SoundHound AI (NASDAQ:SOUN) Stock Price Down 7.8% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 7.8% during trading on Monday. The company traded as low as $4.96 and last traded at $4.97. Approximately 20,218,903 shares traded hands during mid-day trading, a decline of 26% from the average daily volume of 27,217,262 shares. The stock had previously closed at $5.39.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on SOUN. Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. 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 report on Tuesday, September 22nd. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, SoundHound AI has a consensus rating of “Moderate Buy” and an average price target of $12.75.

SoundHound AI Stock Performance

The business’s 50-day moving average is $6.55 and its 200-day moving average is $7.02. The firm has a market cap of $2.21 billion, a price-to-earnings ratio of -13.08 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data 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 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 analysts’ expectations of $52.38 million. During the same quarter last year, the company posted ($0.19) EPS. The company’s quarterly revenue was up 45.0% compared to the same quarter last year. Equities research analysts expect that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 137,290 shares of the firm’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 $869,045.70. Following the sale, the chief executive officer directly owned 3,684,947 shares in the company, valued at approximately $23,325,714.51. This trade represents a 3.59% decrease in their position. The sale was disclosed in a filing with the SEC, 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 71,113 shares of the company’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. This represents a 2.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 288,758 shares of company stock worth $1,828,598. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

A number of institutional investors have recently bought and sold shares of the business. Hilltop Holdings Inc. increased its position in shares of SoundHound AI by 3.5% in the first quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock worth $353,000 after purchasing an additional 1,753 shares during the period. Sterling Investment Counsel LLC increased its position in SoundHound AI by 10.5% during the 1st quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company’s stock worth $157,000 after purchasing an additional 2,173 shares in the last quarter. Empowered Funds LLC increased its position in SoundHound AI by 19.6% during the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock worth $95,000 after purchasing an additional 2,277 shares in the last quarter. Hollencrest Capital Management increased its position in SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares in the last quarter. Finally, Keynote Financial Services LLC lifted its stake in SoundHound AI by 6.9% in the 1st quarter. Keynote Financial Services LLC now owns 37,321 shares of the company’s stock valued at $256,000 after purchasing an additional 2,405 shares during the last quarter. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.