SoundHound AI (NASDAQ:SOUN) Shares Down 2.7% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 2.7% on Tuesday . The company traded as low as $6.02 and last traded at $6.24. 41,227,507 shares traded hands during trading, an increase of 46% from the average session volume of 28,213,232 shares. The stock had previously closed at $6.41.

Analyst Upgrades and Downgrades

SOUN has been the subject of several research reports. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Price Performance

The stock has a market capitalization of $2.66 billion, a P/E ratio of -13.06 and a beta of 2.62. The stock’s fifty day moving average is $7.03 and its 200-day moving average is $7.81.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. During the same quarter last year, the business earned ($0.06) earnings per share. SoundHound AI’s quarterly revenue was up 51.7% on a year-over-year basis. On average, research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the company’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $484,855.24. Following the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 268,022 shares of company stock worth $1,999,444 in the last 90 days. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several large investors have recently modified their holdings of SOUN. Hollencrest Capital Management grew its stake in SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after buying an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its holdings in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S bought a new stake in SoundHound AI during the third quarter valued at about $26,000. Finally, SHP Wealth Management acquired a new stake in shares of SoundHound AI in the fourth quarter valued at about $27,000. 19.28% of the stock is owned by institutional investors.

About SoundHound AI

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.