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

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 1.9% during mid-day trading on Thursday . The stock traded as low as $6.52 and last traded at $6.55. Approximately 18,255,768 shares traded hands during trading, a decline of 33% from the average daily volume of 27,284,254 shares. The stock had previously closed at $6.68.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on SOUN. DA Davidson reiterated a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a research note on Wednesday, April 22nd. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Down 1.8%

The company has a market cap of $2.84 billion, a P/E ratio of -13.96 and a beta of 2.62. The company has a 50 day moving average price of $7.81 and a 200-day moving average price of $8.42.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. SoundHound AI’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.06) earnings per share. On average, research analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, SVP Majid Emami sold 28,843 shares of the company’s 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 $215,168.78. Following the completion of the sale, the senior vice president directly owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their position. The sale was disclosed in a legal 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 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 transaction of $484,855.24. Following the completion of the transaction, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at $12,454,447.62. This trade represents a 3.75% 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 268,022 shares of company stock worth $1,999,444 in the last three months. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of SOUN. EP Wealth Advisors LLC lifted its holdings in shares of SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after buying an additional 706 shares during the period. Newbridge Financial Services Group Inc. grew its holdings in SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after acquiring an additional 830 shares during the period. Insigneo Advisory Services LLC grew its holdings in SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after acquiring an additional 858 shares during the period. Clear Creek Financial Management LLC raised its position in SoundHound AI by 1.6% in the fourth quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock worth $579,000 after acquiring an additional 941 shares in the last quarter. Finally, PNC Financial Services Group Inc. raised its position in SoundHound AI by 15.5% in the third quarter. PNC Financial Services Group Inc. now owns 7,127 shares of the company’s stock worth $115,000 after acquiring an additional 956 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.