SoundHound AI (NASDAQ:SOUN) Shares Down 4.3% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 4.3% during trading on Monday. The company traded as low as $4.20 and last traded at $4.24. 13,577,111 shares traded hands during trading, a decline of 49% from the average session volume of 26,575,043 shares. The stock had previously closed at $4.43.

Analyst Ratings Changes

SOUN has been the subject of a number of recent analyst reports. 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 research report on Tuesday, September 22nd. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday. Weiss Ratings upgraded SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. Yorkville Ives started 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. Finally, DA Davidson reduced their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and an average target price of $11.50.

SoundHound AI Stock Performance

The company’s fifty day simple moving average is $6.06 and its two-hundred day simple moving average is $6.89. The stock has a market capitalization of $1.88 billion, a P/E ratio of -11.16 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same quarter in the previous year, the company posted ($0.19) earnings per share. The business’s revenue was up 45.0% on a year-over-year basis. On average, research analysts predict that SoundHound AI, Inc. will post -0.40 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the sale, the chief operating officer directly owned 2,600,231 shares in the company, valued at $16,459,462.23. The trade was a 2.66% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 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 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 in the company, 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. In the last 90 days, insiders sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently modified their holdings of the business. SG Americas Securities LLC acquired a new position in shares of SoundHound AI in the 1st quarter worth approximately $1,606,000. AXQ Capital LP increased its position in shares of SoundHound AI by 395.6% during the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after buying an additional 203,345 shares during the period. Corient Private Wealth LP raised its stake in SoundHound AI by 777.2% during the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock worth $1,144,000 after buying an additional 156,612 shares during the last quarter. Themes Management Co LLC raised its stake in SoundHound AI by 86.5% during the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock worth $1,315,000 after buying an additional 88,820 shares during the last quarter. Finally, California State Teachers Retirement System raised its stake in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after buying an additional 87,998 shares during the last quarter. 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.