SoundHound AI (NASDAQ:SOUN) Trading Down 2.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 2.4% during trading on Tuesday . The stock traded as low as $10.77 and last traded at $11.00. Approximately 17,399,478 shares traded hands during trading, a decline of 60% from the average daily volume of 43,531,305 shares. The stock had previously closed at $11.27.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on SOUN. Wedbush restated an “outperform” rating and set a $16.00 price objective on shares of SoundHound AI in a report on Thursday, September 11th. Piper Sandler boosted their price target on SoundHound AI from $12.00 to $15.00 and gave the company a “neutral” rating in a research note on Friday, November 7th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Oppenheimer assumed coverage on SoundHound AI in a report on Thursday, September 11th. They issued a “market perform” rating for the company. Two analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $17.07.

SoundHound AI Stock Down 2.4%

The company has a market cap of $4.62 billion, a P/E ratio of -13.10 and a beta of 2.63. The firm has a fifty day moving average price of $14.15 and a 200 day moving average price of $13.44.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The business had revenue of $42.05 million during the quarter, compared to analysts’ expectations of $40.48 million. During the same period in the previous year, the business posted ($0.04) earnings per share. The firm’s revenue for the quarter was up 67.6% compared to the same quarter last year. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, CFO Nitesh Sharan sold 60,376 shares of the stock in a transaction on Tuesday, October 14th. The stock was sold at an average price of $21.21, for a total value of $1,280,574.96. Following the transaction, the chief financial officer directly owned 1,765,928 shares in the company, valued at approximately $37,455,332.88. This trade represents a 3.31% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Keyvan Mohajer sold 118,654 shares of the business’s stock in a transaction on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $2,373,080.00. Following the sale, the chief executive officer owned 2,342,613 shares of the company’s stock, valued at approximately $46,852,260. The trade was a 4.82% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 330,496 shares of company stock valued at $6,591,406 over the last ninety days. Company insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Sound Income Strategies LLC boosted its stake in shares of SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after purchasing an additional 575 shares during the last quarter. Investors Research Corp lifted its holdings in SoundHound AI by 62.4% in the third 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. EP Wealth Advisors LLC boosted its stake in SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after acquiring an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its stake in SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after acquiring an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC grew its holdings in SoundHound AI by 7.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after acquiring an additional 858 shares during the period. 19.28% of the stock is owned by institutional investors.

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.