SoundHound AI (NASDAQ:SOUN) Stock Falls 2.7% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 2.7% during mid-day trading on Tuesday. The stock traded as low as $5.71 and last traded at $5.72. 17,929,305 shares traded hands during mid-day trading, a decline of 35% from the average session volume of 27,450,211 shares. The stock had previously closed at $5.88.

Analysts Set New Price Targets

Several equities analysts recently weighed in on SOUN shares. Piper Sandler cut their price objective 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 report on Friday, September 11th. Wall Street Zen cut SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. Finally, DA Davidson lowered their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and an average price target of $12.75.

SoundHound AI Price Performance

The firm has a market cap of $2.46 billion, a P/E ratio of -14.54 and a beta of 2.73. The company’s 50 day moving average is $6.58 and its two-hundred day moving average is $7.03.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The company’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.19) earnings per share. Research analysts predict that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 38,730 shares of the stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $450,145.29. Following the transaction, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. The trade was a 2.66% 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 quarter, insiders sold 288,758 shares of company stock worth $1,828,598. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in SOUN. NewEdge Advisors LLC raised its holdings in shares of SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock worth $855,000 after buying an additional 36,415 shares in the last quarter. IFP Advisors Inc grew its position in SoundHound AI by 10.7% in the second quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after acquiring an additional 3,163 shares during the period. Allworth Financial LP raised its stake in SoundHound AI by 12.7% during the second quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock worth $146,000 after acquiring an additional 2,537 shares in the last quarter. Waverly Advisors LLC raised its stake in SoundHound AI by 6.9% during the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock worth $415,000 after acquiring an additional 4,138 shares in the last quarter. Finally, Nykredit A S bought a new position in shares of SoundHound AI during the second quarter valued at $165,000. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.