SoundHound AI (NASDAQ:SOUN) Trading Down 8.7% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 8.7% during mid-day trading on Wednesday . The company traded as low as $5.65 and last traded at $5.70. Approximately 46,231,335 shares were traded during trading, an increase of 63% from the average daily volume of 28,358,516 shares. The stock had previously closed at $6.24.

SoundHound AI News Roundup

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: MUSC Health expanded its use of SoundHound’s AI agent platform to retail and specialty pharmacies. Its “Emily” AI agent has now supported more than 2.2 million patient calls across the health system, offering evidence of customer adoption, platform scalability and potential for additional healthcare deployments. MUSC Health expands use of SoundHound’s AI agent platform
• Positive Sentiment: An investment analysis maintained a bullish view, citing SoundHound’s position in the expanding voice-AI market, data-sovereignty capabilities, conversational AI technology, the planned LivePerson acquisition and potential transaction-based revenue. The article assigned a $7.93 one-year price target, though this is an analyst opinion rather than company guidance. SoundHound AI voice AI market analysis
• Positive Sentiment: LivePerson urged shareholders to approve its proposed transaction with SoundHound, highlighting the strategic opportunity to combine their conversational-AI technologies. Completion remains subject to shareholder approval and other closing conditions. LivePerson urges shareholders to approve SoundHound transaction
• Neutral Sentiment: Analysts have assigned SOUN a consensus recommendation of “Moderate Buy,” indicating generally favorable expectations but not a strong unanimous bullish view. SoundHound analyst consensus
• Negative Sentiment: A law firm is soliciting SoundHound shareholders regarding possible fiduciary-duty breaches by company insiders. The notice contains allegations rather than established findings, but it can add reputational and legal uncertainty and weigh on sentiment. SoundHound shareholder investigation notice

Analyst Ratings Changes

Several research analysts recently issued reports on SOUN shares. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, DA Davidson reiterated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The business’s fifty day moving average is $7.09 and its 200-day moving average is $7.85. The firm has a market cap of $2.47 billion, a PE ratio of -12.13 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same period in the prior year, the business earned ($0.06) earnings per share. The business’s quarterly revenue was up 51.7% compared to the same quarter last year. Analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the sale, the chief technology officer owned 502,290 shares of the company’s stock, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. The trade was a 6.10% 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. Insiders sold 268,022 shares of company stock worth $1,999,444 in the last three months. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of the company. Hollencrest Capital Management grew its stake in SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC boosted its holdings in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S purchased a new position in shares of SoundHound AI during the 3rd quarter valued at $26,000. Finally, SHP Wealth Management purchased a new position in shares of SoundHound AI during the 4th 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.