SoundHound AI (NASDAQ:SOUN) Shares Down 3.1% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 3.1% during mid-day trading on Thursday . The stock traded as low as $6.26 and last traded at $6.28. 19,194,326 shares traded hands during trading, a decline of 33% from the average session volume of 28,498,586 shares. The stock had previously closed at $6.48.

Analyst Ratings Changes

A number of analysts have weighed in on SOUN shares. Piper Sandler dropped their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 5th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, four have given 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, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus target price of $13.60.

SoundHound AI Stock Performance

The business has a 50 day simple moving average of $6.75 and a 200-day simple moving average of $7.31. The stock has a market capitalization of $2.79 billion, a P/E ratio of -16.53 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same quarter in the previous year, the business earned ($0.19) EPS. The company’s quarterly revenue was up 45.0% compared to the same quarter last year. Equities research analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Timothy Stonehocker sold 18,802 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the sale, the chief technology officer directly owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value 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. The trade was a 6.10% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 269,365 shares of company stock worth $2,009,047 in the last quarter. Corporate insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. NewEdge Advisors LLC boosted its position in shares of SoundHound AI by 38.1% in the second quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock valued at $855,000 after acquiring an additional 36,415 shares during the period. IFP Advisors Inc increased its stake in SoundHound AI by 10.7% during the second quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after acquiring an additional 3,163 shares during the period. Allworth Financial LP raised its stake in shares of SoundHound AI by 12.7% in the second quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock valued at $146,000 after purchasing an additional 2,537 shares in the last quarter. Waverly Advisors LLC boosted its position in shares of SoundHound AI by 6.9% during the 2nd quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock valued at $415,000 after acquiring an additional 4,138 shares in the last quarter. Finally, Nykredit A S bought a new stake in SoundHound AI in the second quarter valued at $165,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.