SoundHound AI (NASDAQ:SOUN) Sets New 1-Year Low – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price hit a new 52-week low during mid-day trading on Friday. The company traded as low as $4.36 and last traded at $4.4650, with a volume of 1,423,882 shares changing hands. The stock had previously closed at $4.50.

Analysts Set New Price Targets

Several analysts recently issued reports on the company. Piper Sandler cut their price objective on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, September 22nd. DA Davidson lowered 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. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. Finally, Yorkville Ives began coverage on SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $11.50.

SoundHound AI Price Performance

The stock has a market capitalization of $1.96 billion, a P/E ratio of -11.64 and a beta of 2.73. The stock’s fifty day moving average is $6.12 and its 200-day moving average is $6.91.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The business’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.19) earnings per share. On average, research analysts expect that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Buying and Selling

In other news, CEO Keyvan Mohajer sold 137,290 shares of the business’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $869,045.70. Following the completion of the sale, the chief executive officer directly owned 3,684,947 shares in the company, valued at approximately $23,325,714.51. The trade was a 3.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the insider directly owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. This represents a 3.38% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock valued at $1,828,598 in the last quarter. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several hedge funds have recently added to or reduced their stakes in the business. Sterling Capital Management LLC boosted its position in shares of SoundHound AI by 883.1% in the third quarter. Sterling Capital Management LLC now owns 13,812 shares of the company’s stock valued at $83,000 after acquiring an additional 12,407 shares during the period. SBI Securities Co. Ltd. grew its stake in shares of SoundHound AI by 14.5% in the third quarter. SBI Securities Co. Ltd. now owns 108,959 shares of the company’s stock worth $656,000 after acquiring an additional 13,815 shares during the last quarter. Element Pointe Advisors LLC bought a new position in SoundHound AI during the third quarter worth $66,000. Genesee Capital Advisors LLC bought a new position in SoundHound AI during the third quarter worth $118,000. Finally, Abel Hall LLC acquired a new stake in SoundHound AI in the 3rd quarter worth $70,000. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.