SoundHound AI (NASDAQ:SOUN) Shares Down 1.6% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) fell 1.6% during mid-day trading on Friday. The stock traded as low as $4.35 and last traded at $4.43. Approximately 10,588,320 shares traded hands during mid-day trading, a decline of 60% from the average session volume of 26,640,232 shares. The stock had previously closed at $4.50.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the stock. Piper Sandler cut their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a report on Tuesday, September 22nd. Yorkville Ives assumed coverage on shares of SoundHound AI in a research note on Monday, October 5th. They issued an “in-line” rating and a $6.50 price objective on the stock. Weiss Ratings upgraded SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday. Finally, DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus price target of $11.50.

SoundHound AI Price Performance

The company’s 50-day moving average price is $6.06 and its two-hundred day moving average price is $6.89. The company has a market capitalization of $1.97 billion, a price-to-earnings ratio of -11.66 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.11. The business had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. SoundHound AI’s revenue for the quarter was up 45.0% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.19) earnings per share. On average, equities research analysts expect that SoundHound AI, Inc. will post -0.40 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider James Hom sold 38,730 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the insider directly owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. The trade was a 3.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. The trade was a 4.44% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 288,758 shares of company stock valued at $1,828,598. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently added to or reduced their stakes in the business. Financial Management Professionals Inc. bought a new position in shares of SoundHound AI during the 3rd quarter worth approximately $30,000. Trueblood Wealth Management LLC increased its stake in shares of SoundHound AI by 43.4% in the 3rd quarter. Trueblood Wealth Management LLC now owns 59,082 shares of the company’s stock valued at $356,000 after acquiring an additional 17,882 shares in the last quarter. Sterling Capital Management LLC increased its stake in shares of SoundHound AI by 883.1% in the 3rd quarter. Sterling Capital Management LLC now owns 13,812 shares of the company’s stock valued at $83,000 after acquiring an additional 12,407 shares in the last quarter. SBI Securities Co. Ltd. lifted its position in shares of SoundHound AI by 14.5% during the 3rd quarter. SBI Securities Co. Ltd. now owns 108,959 shares of the company’s stock valued at $656,000 after acquiring an additional 13,815 shares during the period. Finally, Element Pointe Advisors LLC acquired a new position in shares of SoundHound AI during the 3rd quarter valued at $66,000. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.