SoundHound AI (NASDAQ:SOUN) Trading Down 1.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 1.4% on Friday . The company traded as low as $6.84 and last traded at $6.90. Approximately 25,892,949 shares changed hands during mid-day trading, a decline of 6% from the average daily volume of 27,481,713 shares. The stock had previously closed at $7.00.

Analyst Ratings Changes

A number of equities research analysts have recently commented on SOUN shares. HC Wainwright dropped their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Piper Sandler reiterated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson reissued a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Price Performance

The business’s 50 day moving average price is $7.91 and its 200 day moving average price is $8.95. The firm has a market cap of $2.99 billion, a PE ratio of -14.68 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same period in the prior year, the business posted ($0.06) earnings per share. The company’s quarterly revenue was up 51.7% compared to the same quarter last year. As a group, analysts predict that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Activity

In related news, insider James Ming Hom sold 31,019 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the insider directly owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Majid Emami sold 31,019 shares of SoundHound AI stock in a transaction 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 sale, the senior vice president directly owned 501,826 shares in the company, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 307,973 shares of company stock valued at $2,091,110 in the last three months. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Vanguard Group Inc. grew its position in shares of SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Rakuten Securities Inc. lifted its position in 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 in the last quarter. Clear Street Group Inc. acquired a new position in SoundHound AI during the third quarter worth $12,944,000. UBS Group AG boosted its stake in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in SoundHound AI by 140.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock valued at $2,826,000 after buying an additional 155,743 shares in the last quarter. Hedge funds and other institutional investors 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.