SoundHound AI (NASDAQ:SOUN) Shares Down 7.2% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 7.2% on Wednesday. The company traded as low as $4.53 and last traded at $4.53. Approximately 19,164,195 shares were traded during trading, a decline of 29% from the average daily volume of 27,124,564 shares. The stock had previously closed at $4.88.

Wall Street Analyst Weigh In

A number of equities research analysts have recently issued reports on SOUN shares. DA Davidson reduced their price target on shares of 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 shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday. Finally, Piper Sandler reduced their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a report on Tuesday, September 22nd. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have given a Hold rating and one has issued 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 $12.75.

SoundHound AI Price Performance

The firm has a 50 day moving average of $6.41 and a two-hundred day moving average of $6.98. The stock has a market cap of $2.08 billion, a PE ratio of -12.28 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data 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. 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 analysts’ expectations of $52.38 million. During the same quarter last year, the company earned ($0.19) earnings per share. The firm’s revenue for the quarter was up 45.0% on a year-over-year basis. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other news, COO Michael Zagorsek sold 71,113 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $450,145.29. Following the completion of the sale, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. This represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 transaction, the insider owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. The trade was a 3.38% decrease in their position. 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 sold a total of 288,758 shares of company stock valued at $1,828,598 over the last ninety days. 8.84% of the stock is currently owned by corporate insiders.

Institutional Trading of SoundHound AI

Large investors have recently bought and sold shares of the company. SHP Wealth Management acquired a new stake in SoundHound AI during the 4th quarter valued at $27,000. Hollencrest Capital Management lifted its position in shares of SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares in the last quarter. Vermillion Wealth Management Inc. lifted its position in shares of SoundHound AI by 92.0% in the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after acquiring an additional 4,409 shares in the last quarter. Clarus Group Inc. acquired a new stake in shares of SoundHound AI during the first quarter valued at $69,000. Finally, 180 Wealth Advisors LLC acquired a new stake in shares of SoundHound AI during the first quarter valued at $69,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

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.