SoundHound AI (NASDAQ:SOUN) Trading Down 5.2% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 5.2% on Monday . The stock traded as low as $6.92 and last traded at $7.04. Approximately 29,702,376 shares were traded during mid-day trading, an increase of 3% from the average daily volume of 28,878,758 shares. The stock had previously closed at $7.43.

Analyst Ratings Changes

A number of research firms recently commented on SOUN. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday. DA Davidson lowered their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Piper Sandler cut their price objective on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $13.60.

SoundHound AI Price Performance

The firm has a 50 day moving average of $6.70 and a two-hundred day moving average of $7.44. The stock has a market cap of $3.10 billion, a PE ratio of -18.39 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same period in the prior year, the firm posted ($0.19) earnings per share. The firm’s revenue was up 45.0% on a year-over-year basis. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Majid Emami sold 28,843 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the senior vice president directly owned 472,983 shares of the company’s stock, valued at $3,528,453.18. This trade represents a 5.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 SoundHound AI stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the sale, the chief executive officer owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% 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. In the last 90 days, insiders have sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently made changes to their positions in the company. Danske Bank A S purchased a new position in SoundHound AI during the 3rd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. lifted its stake in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC lifted its stake in SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares during the last quarter. SHP Wealth Management acquired a new stake in shares of SoundHound AI in the fourth quarter valued at approximately $27,000. Finally, Parallel Advisors LLC boosted its holdings in shares of SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after acquiring an additional 960 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.