SoundHound AI (NASDAQ:SOUN) Shares Down 7.7% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) fell 7.7% during trading on Tuesday . The stock traded as low as $6.36 and last traded at $6.36. 22,139,720 shares were traded during mid-day trading, a decline of 19% from the average session volume of 27,395,867 shares. The stock had previously closed at $6.89.

Analyst Ratings Changes

SOUN has been the subject of a number of recent analyst reports. HC Wainwright lowered their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 7.7%

The business has a fifty day moving average of $8.58 and a 200 day moving average of $12.26. The company has a market cap of $2.69 billion, a P/E ratio of -127.17 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). The business had revenue of $55.06 million for the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm’s revenue for the quarter was up 59.4% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.05) earnings per share. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, SVP Majid Emami sold 32,741 shares of SoundHound AI stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $10.66, for a total transaction of $349,019.06. Following the sale, the senior vice president owned 532,845 shares of the company’s stock, valued at approximately $5,680,127.70. The trade was a 5.79% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CTO Timothy Stonehocker sold 29,676 shares of the company’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $12.00, for a total value of $356,112.00. Following the transaction, the chief technology officer owned 544,179 shares in the company, valued at $6,530,148. This trade represents a 5.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 64,538 shares of company stock worth $728,398 in the last ninety days. Insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SOUN. Northwestern Mutual Wealth Management Co. lifted its holdings in shares of SoundHound AI by 83.1% during 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. Dogwood Wealth Management LLC grew its stake in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after buying an additional 1,544 shares during the last quarter. Danske Bank A S purchased a new stake in shares of SoundHound AI in the 3rd quarter worth approximately $26,000. Advisors Asset Management Inc. increased its position in SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after buying an additional 1,023 shares in the last quarter. Finally, SHP Wealth Management purchased a new position in SoundHound AI during the fourth quarter valued at $27,000. 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.