SoundHound AI (NASDAQ:SOUN) Trading Down 1.5% – Here’s What Happened

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded down 1.5% during trading on Friday . The company traded as low as $7.02 and last traded at $7.11. Approximately 24,494,163 shares were traded during trading, a decline of 15% from the average daily volume of 28,661,592 shares. The stock had previously closed at $7.22.

Wall Street Analyst Weigh In

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

SoundHound AI Stock Performance

The firm has a market capitalization of $3.16 billion, a P/E ratio of -18.71 and a beta of 2.64. The firm has a 50 day simple moving average of $6.71 and a two-hundred day simple moving average of $7.38.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business’s revenue was up 45.0% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.19) EPS. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insiders Place Their Bets

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible 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 SoundHound AI 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 $484,855.24. Following the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 268,022 shares of company stock worth $1,999,444 in the last ninety days. 8.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SOUN. EP Wealth Advisors LLC lifted its stake in SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after purchasing an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. grew its position in shares of SoundHound AI by 2.7% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after purchasing an additional 830 shares in the last quarter. Parallel Advisors LLC increased its holdings in shares of SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after purchasing an additional 960 shares during the period. Northwestern Mutual Wealth Management Co. increased its holdings in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the period. Finally, Integrated Wealth Concepts LLC raised its position in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after buying an additional 1,201 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

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.