SoundHound AI (NASDAQ:SOUN) Shares Down 1.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 1.4% on Wednesday . The stock traded as low as $6.35 and last traded at $6.46. Approximately 36,772,992 shares traded hands during trading, an increase of 32% from the average session volume of 27,846,660 shares. The stock had previously closed at $6.55.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on SOUN shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, SoundHound AI presently has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 1.4%

The stock has a market capitalization of $2.80 billion, a price-to-earnings ratio of -13.74 and a beta of 2.62. The company’s fifty day simple moving average is $7.30 and its 200 day simple moving average is $8.00.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business’s quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.06) EPS. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Transactions at SoundHound AI

In other news, CTO Timothy Stonehocker sold 18,802 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares in the company, valued at $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the company’s stock in a transaction that occurred 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 completion of the transaction, the insider directly owned 743,521 shares in the company, valued at $5,546,666.66. The trade was a 3.73% decrease in their position. 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. Over the last 90 days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

Hedge funds have recently added to or reduced their stakes in the company. EP Wealth Advisors LLC grew its position in SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after acquiring an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. lifted its holdings in shares of SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after acquiring an additional 830 shares during the last quarter. Clear Creek Financial Management LLC boosted its stake in shares of SoundHound AI by 1.6% in the 4th quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock valued at $579,000 after purchasing an additional 941 shares in the last quarter. Parallel Advisors LLC boosted its stake in shares of 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 purchasing an additional 960 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC grew its holdings in shares of SoundHound AI by 5.5% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 18,590 shares of the company’s stock valued at $197,000 after purchasing an additional 964 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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.