SoundHound AI (NASDAQ:SOUN) Shares Down 1.8% After Analyst Downgrade

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 1.8% during trading on Wednesday after Piper Sandler lowered their price target on the stock from $7.00 to $6.00. Piper Sandler currently has a neutral rating on the stock. SoundHound AI traded as low as $6.00 and last traded at $6.01. Approximately 11,123,307 shares were traded during mid-day trading, a decline of 60% from the average daily volume of 28,033,047 shares. The stock had previously closed at $6.12.

Other research analysts have also recently issued reports about the company. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Sunday, September 13th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. 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 report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $12.75.

Insider Buying and Selling

In other SoundHound AI news, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction 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 transaction, the chief operating officer directly 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 legal filing with the SEC, which can be accessed 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 SoundHound AI 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 transaction, the insider directly 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 ownership of the stock. 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 ninety days, insiders have sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SOUN. NewEdge Advisors LLC increased its stake in shares of SoundHound AI by 38.1% in the second quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock valued at $855,000 after buying an additional 36,415 shares in the last quarter. IFP Advisors Inc raised its holdings in shares of SoundHound AI by 10.7% in 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 last quarter. Allworth Financial LP lifted its position in SoundHound AI by 12.7% during the 2nd quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock worth $146,000 after buying an additional 2,537 shares in the last quarter. Waverly Advisors LLC lifted its position in SoundHound AI by 6.9% during the 2nd 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 bought a new stake in SoundHound AI during the 2nd quarter worth about $165,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Trading Down 1.8%

The stock has a market cap of $2.67 billion, a P/E ratio of -15.82 and a beta of 2.66. The business’s fifty day simple moving average is $6.66 and its 200 day simple moving average is $7.17.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results 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 during the quarter, compared to the consensus estimate of $52.38 million. During the same period in the previous year, the firm posted ($0.19) earnings per share. The company’s revenue was up 45.0% on a year-over-year basis. On average, analysts predict that SoundHound AI, Inc. will post -0.33 earnings per share for the current fiscal year.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.