SoundHound AI (NASDAQ:SOUN) Stock Price Down 7.7% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price fell 7.7% on Friday . The stock traded as low as $7.21 and last traded at $7.39. 31,380,194 shares were traded during trading, an increase of 14% from the average session volume of 27,570,428 shares. The stock had previously closed at $8.01.

Wall Street Analyst Weigh In

SOUN has been the subject of several analyst reports. DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Piper Sandler reissued a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The company’s 50-day moving average price is $7.82 and its 200 day moving average price is $9.10. The stock has a market capitalization of $3.20 billion, a P/E ratio of -15.72 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last issued 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). The firm had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company’s quarterly revenue was up 51.7% on a year-over-year basis. During the same period in the prior year, the company posted ($0.06) EPS. Analysts predict that SoundHound AI, Inc. will post -0.43 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 31,019 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the senior vice president directly owned 501,826 shares of the company’s stock, valued at approximately $3,407,398.54. The trade was a 5.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, COO Michael Zagorsek sold 52,968 shares of the company’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the completion of the transaction, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. The trade was a 2.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. Danske Bank A S bought a new position in shares of SoundHound AI during the third quarter worth $26,000. Northwestern Mutual Wealth Management Co. increased its holdings in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC lifted its stake in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. SHP Wealth Management purchased a new stake in SoundHound AI in the 4th quarter worth $27,000. Finally, Parallel Advisors LLC boosted its holdings in shares of SoundHound AI by 42.8% during the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after purchasing an additional 960 shares during the last quarter. Institutional investors own 19.28% of the company’s stock.

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.