SoundHound AI (NASDAQ:SOUN) Trading Down 2.5% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 2.5% during mid-day trading on Wednesday . The stock traded as low as $9.63 and last traded at $9.69. Approximately 20,851,040 shares were traded during trading, a decline of 22% from the average daily volume of 26,745,699 shares. The stock had previously closed at $9.94.

Analyst Ratings Changes

Several equities research analysts recently weighed in on the company. DA Davidson set a $14.00 price objective on SoundHound AI in a report on Thursday, January 8th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Finally, Zacks Research lowered shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday, January 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $16.07.

SoundHound AI Trading Down 2.5%

The company has a 50-day moving average price of $11.21 and a two-hundred day moving average price of $13.51. The stock has a market capitalization of $4.07 billion, a P/E ratio of -11.54 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. The firm had revenue of $42.05 million for the quarter, compared to analysts’ expectations of $40.48 million. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The company’s revenue for the quarter was up 67.6% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.04) EPS. Research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 32,741 shares of the business’s stock in a transaction dated Friday, December 26th. The stock was sold at an average price of $10.66, for a total value of $349,019.06. Following the completion of the sale, the senior vice president directly owned 532,845 shares of the company’s stock, valued at $5,680,127.70. The trade was a 5.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CTO Timothy Stonehocker sold 29,676 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $12.00, for a total value of $356,112.00. Following the completion of the transaction, the chief technology officer owned 544,179 shares in the company, valued at approximately $6,530,148. The trade was a 5.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 462,265 shares of company stock valued at $5,216,518. 9.17% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of the company. Y Intercept Hong Kong Ltd bought a new position in SoundHound AI during the second quarter valued at about $3,696,000. Kieckhefer Group LLC grew its holdings in SoundHound AI by 47.2% during the third quarter. Kieckhefer Group LLC now owns 259,000 shares of the company’s stock valued at $4,165,000 after purchasing an additional 83,000 shares during the period. Osaic Holdings Inc. raised its stake in shares of SoundHound AI by 14.0% in the second quarter. Osaic Holdings Inc. now owns 498,691 shares of the company’s stock valued at $5,351,000 after buying an additional 61,212 shares during the period. Sigma Planning Corp grew its stake in shares of SoundHound AI by 238.1% during the 2nd quarter. Sigma Planning Corp now owns 106,661 shares of the company’s stock worth $1,144,000 after acquiring an additional 75,113 shares during the period. Finally, Fluent Financial LLC purchased a new stake in SoundHound AI in the 3rd quarter worth about $1,083,000. 19.28% of the stock is currently 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.