SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.9% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 1.9% on Tuesday . The stock traded as low as $7.92 and last traded at $8.26. 29,690,944 shares were traded during trading, an increase of 11% from the average session volume of 26,734,068 shares. The stock had previously closed at $8.42.

Analyst Ratings Changes

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

SoundHound AI Trading Down 1.9%

The stock has a market cap of $3.47 billion, a P/E ratio of -9.83 and a beta of 2.65. The firm has a 50-day simple moving average of $11.00 and a two-hundred day simple moving average of $13.43.

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

Insider Activity

In related news, insider James Ming Hom sold 42,600 shares of the stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $480,528.00. Following the sale, the insider owned 803,383 shares of the company’s stock, valued at $9,062,160.24. This represents a 5.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the completion of the transaction, 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 disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 462,265 shares of company stock worth $5,216,518. Insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. International Assets Investment Management LLC grew its stake in SoundHound AI by 14.5% during the fourth quarter. International Assets Investment Management LLC now owns 25,292 shares of the company’s stock worth $252,000 after buying an additional 3,206 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after acquiring an additional 155,743 shares in the last quarter. AssuredPartners Investment Advisors LLC increased its stake in SoundHound AI by 3.7% in the fourth quarter. AssuredPartners Investment Advisors LLC now owns 71,343 shares of the company’s stock valued at $711,000 after acquiring an additional 2,561 shares during the last quarter. Benjamin Edwards Inc. acquired a new position in SoundHound AI during the fourth quarter valued at approximately $235,000. Finally, Danske Bank A S raised its position in SoundHound AI by 106.3% during the fourth quarter. Danske Bank A S now owns 3,300 shares of the company’s stock valued at $33,000 after purchasing an additional 1,700 shares in the last quarter. 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.