SoundHound AI (NASDAQ:SOUN) Trading Down 4.1% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 4.1% during trading on Thursday . The company traded as low as $7.43 and last traded at $7.47. 19,307,660 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 26,869,063 shares. The stock had previously closed at $7.79.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the company. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research report on Thursday, January 8th. HC Wainwright lowered their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Finally, Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One research 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 issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Performance

The business has a 50 day moving average price of $9.19 and a 200-day moving average price of $12.57. The company has a market capitalization of $3.14 billion, a price-to-earnings ratio of -149.37 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). The business had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm’s revenue was up 59.4% on a year-over-year basis. During the same quarter last year, the firm posted ($0.05) earnings per share. As a group, equities analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other news, CFO Nitesh Sharan sold 60,780 shares of the firm’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the sale, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. This trade represents a 3.44% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CTO Timothy Stonehocker sold 29,676 shares of the business’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the transaction, the chief technology officer owned 544,179 shares in the company, valued at $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. Over the last quarter, insiders have sold 460,922 shares of company stock worth $5,199,073. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently made changes to their positions in the stock. SHP Wealth Management acquired a new stake in shares of SoundHound AI in the 4th quarter valued at about $27,000. Virtu Financial LLC raised its stake in SoundHound AI by 43.9% during the 4th quarter. Virtu Financial LLC now owns 219,773 shares of the company’s stock worth $2,191,000 after buying an additional 67,088 shares during the period. Alpine Woods Capital Investors LLC raised its stake in SoundHound AI by 143.0% during the 4th quarter. Alpine Woods Capital Investors LLC now owns 50,742 shares of the company’s stock worth $506,000 after buying an additional 29,857 shares during the period. Vident Advisory LLC boosted its holdings in SoundHound AI by 16.2% in the fourth quarter. Vident Advisory LLC now owns 27,840 shares of the company’s stock worth $278,000 after acquiring an additional 3,875 shares in the last quarter. Finally, EP Wealth Advisors LLC bought a new position in SoundHound AI in the fourth quarter worth approximately $146,000. 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.