SoundHound AI (NASDAQ:SOUN) Shares Down 4.6% – Time to Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded down 4.6% during trading on Tuesday . The stock traded as low as $7.85 and last traded at $8.06. 28,333,142 shares traded hands during trading, an increase of 1% from the average session volume of 27,981,354 shares. The stock had previously closed at $8.45.

Wall Street Analyst Weigh In

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

SoundHound AI Trading Up 1.2%

The business’s fifty day moving average price is $7.55 and its two-hundred day moving average price is $9.84. The firm has a market cap of $3.60 billion, a P/E ratio of -18.13 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last posted its 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 40.15% and a negative net margin of 91.84%.The business had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same period in the previous year, the company earned ($0.06) earnings per share. The company’s quarterly revenue was up 51.7% compared to the same quarter last year. Research analysts predict that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Ming Hom sold 31,019 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 transaction of $210,619.01. Following the completion of the sale, the insider owned 772,364 shares of the company’s stock, valued at $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the transaction, the chief operating officer owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 307,973 shares of company stock worth $2,091,110 in the last 90 days. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several large investors have recently modified their holdings of SOUN. Vanguard Group Inc. grew its holdings in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. increased its position in SoundHound AI by 252.8% in the 3rd quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company’s stock worth $3,519,000 after buying an additional 156,835 shares during the period. Rakuten Securities Inc. lifted its holdings in shares of SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock worth $3,326,000 after buying an additional 299,492 shares during the last quarter. Clear Street Group Inc. acquired a new position in shares of SoundHound AI during the third quarter worth approximately $12,944,000. Finally, Nisa Investment Advisors LLC boosted its position in shares of SoundHound AI by 97.7% in the third quarter. Nisa Investment Advisors LLC now owns 90,041 shares of the company’s stock valued at $1,448,000 after acquiring an additional 44,496 shares during the period. 19.28% of the stock is 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.