SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Time to Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) gapped down before the market opened on Monday . The stock had previously closed at $11.19, but opened at $10.65. SoundHound AI shares last traded at $10.28, with a volume of 9,604,464 shares changing hands.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Cantor Fitzgerald upgraded SoundHound AI to a “hold” rating in a research report on Monday, February 24th. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $18.00 and set a “buy” rating for the company in a research report on Monday, May 12th. Wedbush lowered their price target on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating on the stock in a research note on Friday, May 9th. Finally, DA Davidson lowered their price target on SoundHound AI from $13.00 to $10.00 and set a “buy” rating on the stock in a research note on Monday, April 14th. Four research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $10.29.

SoundHound AI Price Performance

The stock has a 50 day moving average price of $9.08 and a 200-day moving average price of $11.58. The stock has a market capitalization of $4.14 billion, a price-to-earnings ratio of -28.89 and a beta of 2.71. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.03. The company had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The firm’s revenue for the quarter was up 151.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.07) earnings per share. On average, analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider James Ming Hom sold 51,196 shares of the company’s stock in a transaction on Monday, March 24th. The stock was sold at an average price of $10.25, for a total value of $524,759.00. Following the transaction, the insider now owns 638,456 shares of the company’s stock, valued at $6,544,174. This represents a 7.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Majid Emami sold 28,392 shares of the company’s stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total value of $281,080.80. Following the completion of the transaction, the vice president now directly owns 669,834 shares in the company, valued at approximately $6,631,356.60. This trade represents a 4.07% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 548,537 shares of company stock valued at $5,567,760. Insiders own 12.28% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently modified their holdings of the business. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 9.5% in the 1st quarter. Vanguard Group Inc. now owns 35,059,943 shares of the company’s stock valued at $284,687,000 after purchasing an additional 3,028,281 shares during the last quarter. Geode Capital Management LLC lifted its stake in SoundHound AI by 4.4% during the 4th quarter. Geode Capital Management LLC now owns 7,509,496 shares of the company’s stock worth $149,024,000 after acquiring an additional 315,897 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in SoundHound AI by 84.2% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company’s stock worth $40,390,000 after acquiring an additional 2,274,105 shares in the last quarter. Northern Trust Corp lifted its stake in SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company’s stock worth $24,190,000 after acquiring an additional 72,766 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in SoundHound AI by 4.5% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 2,847,261 shares of the company’s stock worth $23,120,000 after purchasing an additional 121,568 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.