SoundHound AI (NASDAQ:SOUN) Trading Down 6.3% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price fell 6.3% on Thursday . The company traded as low as $8.95 and last traded at $9.08. 23,589,013 shares traded hands during trading, a decline of 11% from the average session volume of 26,594,502 shares. The stock had previously closed at $9.69.

Analyst Ratings Changes

Several research firms have recently weighed in on SOUN. Zacks Research cut SoundHound AI from a “hold” rating to a “strong sell” rating in a research report on Monday, January 12th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. DA Davidson set a $14.00 target price on shares of SoundHound AI in a research note on Thursday, January 8th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $16.07.

SoundHound AI Stock Down 6.3%

The firm has a market cap of $3.81 billion, a P/E ratio of -10.81 and a beta of 2.65. The business has a fifty day moving average of $11.17 and a 200 day moving average of $13.48.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 60,780 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the transaction, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. This represents a 3.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Keyvan Mohajer sold 144,326 shares of the firm’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the completion of the transaction, the chief executive officer directly owned 2,198,287 shares of the company’s stock, valued at approximately $24,796,677.36. This trade represents a 6.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 462,265 shares of company stock worth $5,216,518. Corporate insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the last quarter. Danske Bank A S bought a new stake in shares of SoundHound AI in the third quarter valued at about $26,000. Advisors Asset Management Inc. grew its stake in shares of SoundHound AI by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after acquiring an additional 1,023 shares in the last quarter. Investors Research Corp increased its position in SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after acquiring an additional 700 shares during the period. Finally, Financial Consulate Inc. acquired a new stake in SoundHound AI in the 3rd quarter worth about $32,000. 19.28% of the stock is currently owned by institutional investors.

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.