SoundHound AI (NASDAQ:SOUN) Trading Down 3.2% – Time to Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 3.2% on Thursday . The stock traded as low as $10.90 and last traded at $10.92. Approximately 25,544,595 shares were traded during mid-day trading, a decline of 13% from the average daily volume of 29,304,088 shares. The stock had previously closed at $11.28.

Analysts Set New Price Targets

SOUN has been the subject of several research reports. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research report on Thursday, January 8th. HC Wainwright lifted their price target on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research report on Thursday, October 16th. Finally, Piper Sandler cut their price objective on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday, January 5th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Up 1.6%

The stock has a market capitalization of $4.66 billion, a P/E ratio of -13.21 and a beta of 2.65. The company has a fifty day simple moving average of $11.51 and a two-hundred day simple moving average of $13.54.

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

Insider Activity at SoundHound AI

In related news, insider James Ming Hom sold 42,600 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $480,528.00. Following the sale, the insider owned 803,383 shares of the company’s stock, valued at approximately $9,062,160.24. The trade was a 5.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Majid Emami sold 42,600 shares of the stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the senior vice president directly owned 565,586 shares of the company’s stock, valued at approximately $6,379,810.08. The trade was a 7.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 462,265 shares of company stock worth $5,216,518. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. boosted its position in SoundHound AI by 16.4% during the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the period. Jump Financial LLC bought a new position in SoundHound AI in the 3rd quarter valued at about $21,679,000. HRT Financial LP acquired a new stake in SoundHound AI during the second quarter worth approximately $11,914,000. Goldman Sachs Group Inc. grew its holdings in SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock valued at $21,434,000 after buying an additional 1,085,473 shares in the last quarter. Finally, Bank of New York Mellon Corp grew its stake in shares of SoundHound AI by 91.6% in the second quarter. Bank of New York Mellon Corp now owns 1,762,827 shares of the company’s stock valued at $18,915,000 after acquiring an additional 842,973 shares in 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.