SoundHound AI (NASDAQ:SOUN) Shares Gap Down on Analyst Downgrade

SoundHound AI, Inc. (NASDAQ:SOUN) shares gapped down prior to trading on Monday after HC Wainwright lowered their price target on the stock from $26.00 to $20.00. The stock had previously closed at $8.60, but opened at $7.95. HC Wainwright currently has a buy rating on the stock. SoundHound AI shares last traded at $8.4680, with a volume of 7,865,872 shares trading hands.

Several other analysts have also recently weighed in on SOUN. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research report on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Cantor Fitzgerald upgraded shares of 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 report on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $14.93.

Insider Activity at SoundHound AI

In other news, CFO Nitesh Sharan sold 60,780 shares of the business’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 transaction, the chief financial officer directly owned 1,705,148 shares of the company’s stock, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Timothy Stonehocker sold 29,676 shares of the firm’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the sale, the chief technology officer directly owned 544,179 shares of the company’s stock, valued at approximately $6,530,148. This represents a 5.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 460,922 shares of company stock worth $5,199,073 over the last three months. Corporate insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley grew its holdings in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after acquiring an additional 2,917,280 shares during the period. UBS Group AG increased its position in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during the last quarter. Voloridge Investment Management LLC lifted its holdings 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 valued at $21,929,000 after acquiring an additional 2,106,298 shares during the period. Finally, Jump Financial LLC purchased a new position in SoundHound AI in the third quarter worth about $21,679,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Stock Performance

The company’s 50-day moving average price is $9.58 and its 200 day moving average price is $12.88. The stock has a market cap of $3.55 billion, a PE ratio of -168.99 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.82%. The company had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. During the same period in the previous year, the business posted ($0.05) earnings per share. The firm’s quarterly revenue was up 59.4% compared to the same quarter last year. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

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.