SoundHound AI (NASDAQ:SOUN) Shares Down 5.9% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 5.9% during trading on Tuesday . The stock traded as low as $10.40 and last traded at $10.45. Approximately 25,316,296 shares traded hands during mid-day trading, a decline of 11% from the average daily volume of 28,600,457 shares. The stock had previously closed at $11.10.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SOUN. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. HC Wainwright boosted their price target on shares of SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research report on Thursday, October 16th. Zacks Research lowered shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday, January 12th. Finally, Piper Sandler cut their price objective on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. Two research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and an average target price of $16.07.

SoundHound AI Price Performance

The company has a market cap of $4.39 billion, a PE ratio of -12.44 and a beta of 2.65. The company’s 50 day simple moving average is $11.45 and its two-hundred day simple moving average is $13.58.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.09) by $0.06. The firm had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The business’s revenue for the quarter was up 67.6% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.04) EPS. Sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other news, COO Michael Zagorsek sold 73,406 shares of the firm’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the transaction, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. This trade represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the completion of the sale, the chief financial officer directly owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 462,265 shares of company stock valued at $5,216,518 over the last ninety days. 9.17% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

A number of institutional investors and hedge funds have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. boosted its stake in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the period. Danske Bank A S purchased a new stake in SoundHound AI during the 3rd quarter worth approximately $26,000. Advisors Asset Management Inc. lifted its holdings in SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after buying an additional 1,023 shares in the last quarter. Investors Research Corp boosted its position in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after buying an additional 700 shares during the period. Finally, Financial Consulate Inc. acquired a new position in shares of SoundHound AI in the third quarter worth $32,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

About SoundHound AI

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.