SoundHound AI (NASDAQ:SOUN) Shares Down 2.7% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 2.7% during mid-day trading on Monday . The company traded as low as $10.29 and last traded at $10.41. Approximately 20,408,017 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 43,207,410 shares. The stock had previously closed at $10.70.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on SOUN shares. Oppenheimer began coverage on shares of SoundHound AI in a research note on Thursday, September 11th. They set a “market perform” rating on the stock. DA Davidson restated a “buy” rating and set a $17.00 target price on shares of SoundHound AI in a report on Tuesday, November 18th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Finally, Piper Sandler upped their target price on SoundHound AI from $12.00 to $15.00 and gave the stock a “neutral” rating in a research report on Friday, November 7th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus price target of $17.07.

SoundHound AI Trading Down 2.7%

The stock has a fifty day simple moving average of $13.38 and a 200-day simple moving average of $13.46. The stock has a market cap of $4.37 billion, a price-to-earnings ratio of -12.39 and a beta of 2.63.

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

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 118,654 shares of SoundHound AI stock in a transaction dated Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total transaction of $2,373,080.00. Following the sale, the chief executive officer directly owned 2,342,613 shares of the company’s stock, valued at $46,852,260. This trade represents a 4.82% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Majid Emami sold 41,167 shares of the company’s stock in a transaction that occurred on Wednesday, October 8th. The shares were sold at an average price of $20.00, for a total value of $823,340.00. Following the completion of the transaction, the vice president directly owned 608,186 shares of the company’s stock, valued at approximately $12,163,720. This trade represents a 6.34% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 292,064 shares of company stock worth $5,904,921 in the last three months. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently made changes to their positions in SOUN. Northwestern Mutual Wealth Management Co. boosted its position in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. Danske Bank A S acquired a new stake in SoundHound AI during the third quarter valued at approximately $26,000. Advisors Asset Management Inc. grew its stake in shares of SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after purchasing an additional 1,023 shares during the period. Investors Research Corp raised its holdings in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after buying an additional 700 shares in the last quarter. Finally, AlphaQuest LLC acquired a new stake in SoundHound AI in the 1st quarter valued at $32,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.