SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.2% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 5.2% during trading on Monday . The stock traded as low as $6.92 and last traded at $7.04. Approximately 29,702,376 shares changed hands during trading, an increase of 3% from the average session volume of 28,878,758 shares. The stock had previously closed at $7.43.

Analysts Set New Price Targets

Several brokerages have issued reports on SOUN. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Piper Sandler cut their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and an average price target of $13.60.

SoundHound AI Stock Performance

The business’s fifty day moving average price is $6.71 and its 200-day moving average price is $7.48. The stock has a market cap of $3.13 billion, a PE ratio of -18.53 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same quarter in the prior year, the firm earned ($0.19) earnings per share. The firm’s revenue for the quarter was up 45.0% compared to the same quarter last year. Analysts forecast that SoundHound AI, Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 64,994 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares in the company, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the sale, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. The trade was a 6.10% 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. Over the last quarter, insiders sold 268,022 shares of company stock worth $1,999,444. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Hollencrest Capital Management increased its stake in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC grew 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 purchasing 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 purchased a new stake in SoundHound AI in the fourth quarter worth about $27,000. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

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.