SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.6% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 3.6% during trading on Monday. The company traded as low as $5.83 and last traded at $5.83. 14,620,024 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 27,772,795 shares. The stock had previously closed at $6.05.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday. Piper Sandler decreased their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. Finally, DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus price target of $12.75.

SoundHound AI Trading Down 3.6%

The firm has a market cap of $2.59 billion, a price-to-earnings ratio of -15.34 and a beta of 2.66. The company has a 50 day moving average of $6.64 and a 200 day moving average of $7.13.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate 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 firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same period in the previous year, the company posted ($0.19) earnings per share. The company’s revenue for the quarter was up 45.0% on a year-over-year basis. Equities analysts forecast that SoundHound AI, Inc. will post -0.32 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the transaction, the chief operating officer directly owned 2,600,231 shares in the company, valued at approximately $16,459,462.23. The trade was a 2.66% decrease in their position. The sale was disclosed in a document filed 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, SVP Majid Emami sold 38,730 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the senior vice president directly owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. The trade was a 4.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock valued at $1,828,598 over the last 90 days. 8.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC lifted its position in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after purchasing an additional 273,097 shares in the last quarter. SG Americas Securities LLC bought a new position in SoundHound AI in the first quarter valued at $1,606,000. AXQ Capital LP increased its stake in SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after buying an additional 203,345 shares during the last quarter. Corient Private Wealth LP increased its stake in SoundHound AI by 777.2% in the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock valued at $1,144,000 after buying an additional 156,612 shares during the last quarter. Finally, Havemeyer Place LP bought a new stake in SoundHound AI during the 4th quarter worth about $956,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.