SoundHound AI (NASDAQ:SOUN) Trading Down 7% – Time to Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 7% on Monday . The stock traded as low as $7.40 and last traded at $7.46. 35,431,424 shares traded hands during mid-day trading, an increase of 22% from the average session volume of 29,087,770 shares. The stock had previously closed at $8.02.

Analyst Ratings Changes

Several research firms have issued reports on SOUN. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. DA Davidson cut their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday. Piper Sandler reduced their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.00.

SoundHound AI Trading Down 7.0%

The company has a market cap of $3.23 billion, a price-to-earnings ratio of -19.63 and a beta of 2.64. The stock’s 50 day moving average price is $6.79 and its 200 day moving average price is $7.58.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The company had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period last year, the company posted ($0.06) EPS. The business’s revenue for the quarter was up 51.7% on a year-over-year basis. On average, equities analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This represents a 6.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares of the company’s stock, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock valued at $1,999,444 over the last quarter. Company insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently added to or reduced their stakes in the company. Handelsbanken Fonder AB boosted its position in SoundHound AI by 17.4% in the 2nd quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company’s stock valued at $802,000 after buying an additional 18,400 shares during the last quarter. Focus Financial Network Inc. lifted its stake in shares of SoundHound AI by 21.4% in the second quarter. Focus Financial Network Inc. now owns 48,229 shares of the company’s stock worth $312,000 after acquiring an additional 8,516 shares in the last quarter. IFC & Insurance Marketing Inc. lifted its stake in shares of SoundHound AI by 17.9% in the second quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company’s stock worth $273,000 after acquiring an additional 6,427 shares in the last quarter. Hennion & Walsh Asset Management Inc. boosted its holdings in SoundHound AI by 19.2% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company’s stock valued at $768,000 after purchasing an additional 19,133 shares during the last quarter. Finally, Empowered Funds LLC grew its stake in SoundHound AI by 19.6% during the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after purchasing an additional 2,277 shares in the last quarter. Institutional investors and hedge funds 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.