SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.9% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 1.9% on Wednesday. The stock traded as low as $4.55 and last traded at $4.61. 11,228,800 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 26,797,873 shares. The stock had previously closed at $4.70.

Wall Street Analyst Weigh In

SOUN has been the topic of several research reports. DA Davidson lowered their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Wall Street Zen lowered shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Yorkville Ives began coverage on shares of SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 target price on the stock. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Finally, Piper Sandler dropped their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $11.50.

SoundHound AI Stock Performance

The firm has a market cap of $2.05 billion, a P/E ratio of -12.13 and a beta of 2.73. The firm has a 50 day simple moving average of $6.24 and a 200 day simple moving average of $6.94.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $61.90 million for the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the prior year, the business posted ($0.19) earnings per share. The company’s revenue was up 45.0% on a year-over-year basis. Sell-side analysts predict that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insider Activity

In related news, SVP Majid Emami sold 38,730 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the senior vice president owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 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 stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the sale, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. This represents 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. Insiders sold a total of 288,758 shares of company stock worth $1,828,598 in the last three months. Insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. SHP Wealth Management purchased a new stake in shares of SoundHound AI in the fourth quarter worth $27,000. Hollencrest Capital Management grew its position in SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after buying an additional 2,400 shares in the last quarter. Vermillion Wealth Management Inc. grew its position in SoundHound AI by 92.0% during the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock worth $63,000 after buying an additional 4,409 shares in the last quarter. Clarus Group Inc. purchased a new position in SoundHound AI during the first quarter worth about $69,000. Finally, 180 Wealth Advisors LLC bought a new position in SoundHound AI in the 1st quarter worth about $69,000. 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.