SoundHound AI (NASDAQ:SOUN) Trading Down 2.3% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 2.3% on Monday . The company traded as low as $6.39 and last traded at $6.49. 29,333,806 shares traded hands during trading, an increase of 7% from the average daily volume of 27,352,227 shares. The stock had previously closed at $6.64.

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 Wednesday, May 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. One investment 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 assigned a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The firm has a 50-day moving average of $7.63 and a 200-day moving average of $8.21. The firm has a market capitalization of $2.81 billion, a P/E ratio of -13.81 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The company had revenue of $44.20 million during 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%. The business’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.06) EPS. Equities analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 28,843 shares of the firm’s stock in a transaction 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 sale, the senior vice president owned 472,983 shares of the company’s stock, valued at $3,528,453.18. This trade represents a 5.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the business’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the insider owned 743,521 shares in the company, valued at $5,546,666.66. The trade was a 3.73% decrease in their position. 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 a total of 268,022 shares of company stock worth $1,999,444 over the last ninety days. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of large investors have recently made changes to their positions in the business. Morgan Stanley increased its stake in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after buying an additional 2,917,280 shares during the period. UBS Group AG lifted its stake in SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after acquiring an additional 2,676,707 shares during the period. Voloridge Investment Management LLC lifted its stake in SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after acquiring an additional 2,106,298 shares during the period. Vanguard Group Inc. boosted its holdings in SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares in the last quarter. Finally, Jump Financial LLC bought a new stake in SoundHound AI in the third quarter valued at $21,679,000. 19.28% of the stock is currently owned by 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.