SoundHound AI (NASDAQ:SOUN) Shares Down 5.2% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 5.2% during mid-day trading on Monday . The company traded as low as $6.92 and last traded at $7.04. 29,702,376 shares were traded during trading, an increase of 3% from the average session volume of 28,878,758 shares. The stock had previously closed at $7.43.

Analysts Set New Price Targets

Several research firms recently issued reports on SOUN. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday. DA Davidson dropped their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Piper Sandler reduced their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, August 6th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Price Performance

The firm has a 50-day moving average of $6.71 and a 200-day moving average of $7.48. The stock has a market cap of $3.13 billion, a PE ratio of -18.53 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company had revenue of $61.90 million for the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the previous year, the firm earned ($0.19) EPS. The firm’s revenue was up 45.0% compared to the same quarter last year. Equities analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Insider Activity

In related news, CTO Timothy Stonehocker sold 18,802 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed 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 the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction 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 ownership of the stock. 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. Over the last 90 days, insiders have sold 268,022 shares of company stock valued at $1,999,444. Company insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Handelsbanken Fonder AB lifted its position in shares of SoundHound AI by 17.4% in the second quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company’s stock worth $802,000 after buying an additional 18,400 shares in the last quarter. Focus Financial Network Inc. increased its stake in SoundHound AI by 21.4% in the 2nd quarter. Focus Financial Network Inc. now owns 48,229 shares of the company’s stock worth $312,000 after acquiring an additional 8,516 shares during the last quarter. IFC & Insurance Marketing Inc. raised its holdings in shares of SoundHound AI by 17.9% during the 2nd quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company’s stock worth $273,000 after acquiring an additional 6,427 shares in the last quarter. Hennion & Walsh Asset Management Inc. raised its holdings in shares of SoundHound AI by 19.2% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company’s stock worth $768,000 after acquiring an additional 19,133 shares in the last quarter. Finally, Empowered Funds LLC boosted its position in shares of SoundHound AI by 19.6% during the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after acquiring an additional 2,277 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.