SoundHound AI (NASDAQ:SOUN) Trading Down 5.2% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 5.2% during trading on Friday . The company traded as low as $10.17 and last traded at $10.33. Approximately 26,284,282 shares changed hands during trading, a decline of 5% from the average daily volume of 27,691,646 shares. The stock had previously closed at $10.90.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SOUN. HC Wainwright upped their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research report on Thursday, October 16th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $13.00 to $15.00 in a report on Friday, December 12th. Piper Sandler reduced their price objective on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Finally, Zacks Research downgraded SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $16.07.

SoundHound AI Trading Down 5.2%

The company has a market capitalization of $4.34 billion, a PE ratio of -12.30 and a beta of 2.65. The company’s 50 day moving average price is $11.31 and its 200-day moving average price is $13.53.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $40.48 million. During the same period last year, the company posted ($0.04) EPS. The business’s quarterly revenue was up 67.6% on a year-over-year basis. As a group, analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the completion of the sale, the chief executive officer directly owned 2,198,287 shares of the company’s stock, valued at approximately $24,796,677.36. This represents a 6.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Majid Emami sold 32,741 shares of the stock in a transaction on Friday, December 26th. The shares were sold at an average price of $10.66, for a total value of $349,019.06. Following the completion of the sale, the senior vice president owned 532,845 shares of the company’s stock, valued at approximately $5,680,127.70. This represents a 5.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 462,265 shares of company stock valued at $5,216,518 over the last quarter. Company insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of the stock. Sound Income Strategies LLC increased its stake in SoundHound AI by 37.3% during the third 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 boosted its holdings in shares of 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. EP Wealth Advisors LLC grew its position in shares of SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after buying an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. raised its stake in SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after acquiring an additional 830 shares during the period. Finally, Insigneo Advisory Services LLC lifted its holdings in SoundHound AI by 7.4% in the third 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 last quarter. 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.