SoundHound AI (NASDAQ:SOUN) Shares Down 6.3% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 6.3% during mid-day trading on Thursday . The company traded as low as $8.95 and last traded at $9.08. Approximately 23,589,013 shares traded hands during trading, a decline of 11% from the average daily volume of 26,594,502 shares. The stock had previously closed at $9.69.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on SOUN shares. DA Davidson set a $14.00 target price on SoundHound AI in a report on Thursday, January 8th. Piper Sandler reduced their price objective on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $13.00 to $15.00 in a report on Friday, December 12th. Finally, Zacks Research downgraded shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a research note on Monday, January 12th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and a consensus target price of $16.07.

SoundHound AI Stock Performance

The business has a fifty day simple moving average of $11.07 and a 200-day simple moving average of $13.43. The stock has a market capitalization of $3.55 billion, a P/E ratio of -10.07 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. The business had revenue of $42.05 million for the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The firm’s revenue for the quarter was up 67.6% on a year-over-year basis. During the same period in the prior year, the business earned ($0.04) EPS. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, SVP Majid Emami sold 32,741 shares of SoundHound AI stock in a transaction on Friday, December 26th. The stock was sold at an average price of $10.66, for a total transaction of $349,019.06. Following the sale, the senior vice president directly owned 532,845 shares in the company, valued at $5,680,127.70. The trade was a 5.79% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Nitesh Sharan sold 60,780 shares of the firm’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $685,598.40. Following the completion of the sale, the chief financial officer directly owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. This represents a 3.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 462,265 shares of company stock valued at $5,216,518 in the last ninety days. Insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. boosted its holdings in shares of 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 buying an additional 1,060 shares in the last quarter. Danske Bank A S purchased a new stake in shares of SoundHound AI during the third quarter valued at $26,000. Advisors Asset Management Inc. boosted its holdings in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after acquiring an additional 1,023 shares during the last quarter. Investors Research Corp grew its position in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after purchasing an additional 700 shares during the period. Finally, Financial Consulate Inc. bought a new stake in shares of SoundHound AI in the third quarter worth $32,000. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.