SoundHound AI (NASDAQ:SOUN) Trading Down 4.4% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price fell 4.4% during mid-day trading on Monday . The stock traded as low as $6.99 and last traded at $7.00. 17,118,952 shares changed hands during trading, a decline of 41% from the average daily volume of 28,773,664 shares. The stock had previously closed at $7.32.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the stock. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler lowered their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, August 6th. DA Davidson cut their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 15th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned 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.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $13.60.

SoundHound AI Price Performance

The stock has a market cap of $3.11 billion, a PE ratio of -18.42 and a beta of 2.64. The stock has a 50-day simple moving average of $6.71 and a 200-day simple moving average of $7.41.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million for the quarter, compared to the consensus estimate 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 quarterly revenue was up 45.0% compared to the same quarter last year. During the same period last year, the business posted ($0.19) EPS. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of the business’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 transaction of $215,168.78. Following the completion of the sale, the senior vice president directly owned 472,983 shares in the company, valued at $3,528,453.18. The trade was a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the sale, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This trade represents a 6.10% 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. Insiders have sold a total of 268,022 shares of company stock valued at $1,999,444 in the last three months. 8.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Hollencrest Capital Management raised its holdings in shares of SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after buying an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. grew its holdings in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC increased its stake in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S purchased a new stake in SoundHound AI during the 3rd quarter worth $26,000. Finally, SHP Wealth Management acquired a new position in SoundHound AI in the 4th quarter worth $27,000. Institutional investors and hedge funds 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.