SoundHound AI (NASDAQ:SOUN) Trading Down 4.3% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 4.3% during mid-day trading on Tuesday . The stock traded as low as $6.76 and last traded at $6.85. Approximately 26,285,517 shares traded hands during mid-day trading, a decline of 8% from the average session volume of 28,612,813 shares. The stock had previously closed at $7.16.

Analysts Set New Price Targets

SOUN has been the subject of a number of research analyst reports. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday, August 15th. Piper Sandler reduced their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, DA Davidson decreased their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Price Performance

The business has a 50 day moving average of $6.71 and a 200 day moving average of $7.36. The firm has a market capitalization of $3.04 billion, a price-to-earnings ratio of -18.03 and a beta of 2.64.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the senior vice president owned 472,983 shares of the company’s stock, valued at $3,528,453.18. This trade represents a 5.75% decrease in their ownership of the stock. 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. In the last three months, insiders have sold 269,365 shares of company stock valued at $2,009,047. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently made changes to their positions in SOUN. EP Wealth Advisors LLC boosted its position in SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after acquiring an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. grew its position in SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after purchasing an additional 830 shares in the last quarter. Parallel Advisors LLC increased its stake in SoundHound AI by 42.8% in the 3rd quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after buying an additional 960 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of 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 acquiring an additional 1,060 shares during the last quarter. Finally, Integrated Wealth Concepts LLC raised its stake in shares of SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after purchasing an additional 1,201 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

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.