SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.5% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 2.5% on Tuesday . The stock traded as low as $6.47 and last traded at $6.57. 39,221,797 shares changed hands during trading, an increase of 37% from the average session volume of 28,559,805 shares. The stock had previously closed at $6.74.

Analyst Ratings Changes

A number of analysts recently issued reports on SOUN shares. Wall Street Zen downgraded shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 5th. DA Davidson cut their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Piper Sandler decreased their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.60.

SoundHound AI Trading Down 3.1%

The company has a market cap of $2.79 billion, a price-to-earnings ratio of -16.53 and a beta of 2.66. The business has a 50-day moving average price of $6.75 and a 200 day moving average price of $7.31.

SoundHound AI (NASDAQ:SOUN) last posted 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. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. During the same quarter last year, the business posted ($0.19) EPS. The company’s revenue was up 45.0% on a year-over-year basis. On average, analysts anticipate that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insider Activity

In related news, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the senior vice president owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. The trade was a 5.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $484,855.24. Following the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their position. 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. In the last 90 days, insiders have sold 269,365 shares of company stock valued at $2,009,047. 8.84% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geode Capital Management LLC raised its holdings in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after buying an additional 273,097 shares during the last quarter. Morgan Stanley raised its position in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the period. State Street Corp boosted its holdings in shares of SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after buying an additional 80,908 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in SoundHound AI by 13.4% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,697,346 shares of the company’s stock worth $91,604,000 after purchasing an additional 672,714 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its position in SoundHound AI by 2.5% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,364,998 shares of the company’s stock valued at $33,549,000 after buying an additional 82,428 shares during the last quarter. Institutional investors 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.