SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.9% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 2.9% on Monday . The stock traded as low as $16.42 and last traded at $17.11. Approximately 35,915,638 shares traded hands during mid-day trading, a decline of 22% from the average daily volume of 46,109,773 shares. The stock had previously closed at $17.62.

Wall Street Analyst Weigh In

Several brokerages have commented on SOUN. Northland Capmk raised SoundHound AI from a “hold” rating to a “strong-buy” rating in a research note on Friday, August 8th. Oppenheimer assumed coverage on shares of SoundHound AI in a research note on Thursday, September 11th. They issued a “market perform” rating for the company. Northland Securities raised shares of SoundHound AI from a “market perform” rating to an “outperform” rating and set a $14.50 target price on the stock in a research note on Friday, August 8th. Piper Sandler reiterated a “neutral” rating and issued a $12.00 price target on shares of SoundHound AI in a research note on Monday, July 14th. Finally, Wall Street Zen lowered SoundHound AI from a “hold” rating to a “sell” rating in a research report on Saturday, August 9th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus price target of $15.50.

SoundHound AI Price Performance

The company has a market cap of $6.98 billion, a price-to-earnings ratio of -27.16 and a beta of 2.60. The business’s fifty day moving average price is $16.37 and its 200 day moving average price is $12.76.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, August 7th. The company reported ($0.19) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.13). The company had revenue of $42.68 million for the quarter, compared to the consensus estimate of $32.88 million. SoundHound AI had a negative return on equity of 73.13% and a negative net margin of 171.81%.The firm’s revenue for the quarter was up 216.3% on a year-over-year basis. During the same period in the prior year, the business earned ($0.11) earnings per share. SoundHound AI has set its FY 2025 guidance at EPS. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, CTO Timothy Stonehocker sold 70,524 shares of the stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total transaction of $1,410,480.00. Following the completion of the sale, the chief technology officer directly owned 606,525 shares in the company, valued at $12,130,500. This represents a 10.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Keyvan Mohajer sold 118,654 shares of the business’s stock in a transaction on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total transaction of $2,373,080.00. Following the completion of the transaction, the chief executive officer owned 2,342,613 shares in the company, valued at approximately $46,852,260. The trade was a 4.82% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 785,917 shares of company stock worth $13,955,610. Company insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Virtu Financial LLC bought a new stake in shares of SoundHound AI in the 1st quarter valued at $2,395,000. Northern Trust Corp increased its stake in SoundHound AI by 2.5% in the first quarter. Northern Trust Corp now owns 2,979,011 shares of the company’s stock valued at $24,190,000 after purchasing an additional 72,766 shares in the last quarter. Carnegie Investment Counsel raised its holdings in shares of SoundHound AI by 8.9% during the first quarter. Carnegie Investment Counsel now owns 1,069,860 shares of the company’s stock valued at $8,131,000 after purchasing an additional 87,810 shares during the period. Y Intercept Hong Kong Ltd bought a new position in shares of SoundHound AI during the 2nd quarter worth about $3,696,000. Finally, Liontrust Investment Partners LLP acquired a new stake in shares of SoundHound AI in the 1st quarter valued at about $1,639,000. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.