SoundHound AI (NASDAQ:SOUN) Shares Down 4.1% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 4.1% on Tuesday . The stock traded as low as $6.85 and last traded at $7.03. Approximately 31,203,527 shares traded hands during trading, an increase of 13% from the average daily volume of 27,534,666 shares. The stock had previously closed at $7.33.

Analyst Upgrades and Downgrades

SOUN has been the topic of several recent analyst reports. DA Davidson restated a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Piper Sandler restated a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Finally, HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Trading Down 4.1%

The stock has a market capitalization of $3.04 billion, a PE ratio of -14.96 and a beta of 2.56. The firm has a 50-day moving average price of $7.93 and a 200-day moving average price of $8.88.

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

Insider Activity

In other news, CFO Nitesh Sharan sold 44,027 shares of the firm’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at $11,279,011.59. This trade represents a 2.58% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Majid Emami sold 31,019 shares of the firm’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the sale, the senior vice president directly owned 501,826 shares of the company’s stock, valued at approximately $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Vanguard Group Inc. increased its holdings in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Rakuten Securities Inc. grew its holdings in SoundHound AI by 877.9% during the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after buying an additional 299,492 shares in the last quarter. Clear Street Group Inc. purchased a new position in SoundHound AI during the 3rd quarter valued at about $12,944,000. UBS Group AG grew its holdings in SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after buying an additional 2,676,707 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in SoundHound AI by 140.5% during the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock valued at $2,826,000 after buying an additional 155,743 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.