SoundHound AI (NASDAQ:SOUN) Shares Down 3.5% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 3.5% on Friday. The stock traded as low as $5.78 and last traded at $5.84. 23,315,863 shares changed hands during mid-day trading, a decline of 15% from the average session volume of 27,570,354 shares. The stock had previously closed at $6.05.

Analyst Upgrades and Downgrades

Several brokerages have commented on SOUN. DA Davidson lowered their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. Piper Sandler lowered their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Finally, Wall Street Zen lowered shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $12.75.

SoundHound AI Stock Down 3.5%

The company has a 50 day moving average price of $6.60 and a 200-day moving average price of $7.08. The company has a market cap of $2.59 billion, a price-to-earnings ratio of -15.37 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping 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 business had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same period last year, the company earned ($0.19) EPS. The firm’s revenue was up 45.0% compared to the same quarter last year. On average, analysts forecast that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 71,113 shares of the company’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at approximately $16,459,462.23. This represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the transaction, 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. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 288,758 shares of company stock worth $1,828,598. Company insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently made changes to their positions in SOUN. NewEdge Advisors LLC boosted its stake in SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock worth $855,000 after purchasing an additional 36,415 shares during the period. IFP Advisors Inc increased its position in shares of 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 buying an additional 3,163 shares during the period. Allworth Financial LP increased its position in shares of SoundHound AI by 12.7% during the second quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock valued at $146,000 after buying an additional 2,537 shares during the period. Waverly Advisors LLC lifted its holdings in shares of SoundHound AI by 6.9% in the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock worth $415,000 after buying an additional 4,138 shares in the last quarter. Finally, Nykredit A S purchased a new stake in shares of SoundHound AI in the second quarter worth about $165,000. 19.28% of the stock is owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.