SoundHound AI (NASDAQ:SOUN) Shares Down 8.9% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 8.9% during trading on Thursday . The company traded as low as $7.26 and last traded at $7.35. 30,989,142 shares traded hands during mid-day trading, an increase of 13% from the average session volume of 27,357,582 shares. The stock had previously closed at $8.07.

Analyst Ratings Changes

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

SoundHound AI Price Performance

The business’s fifty day simple moving average is $10.85 and its 200 day simple moving average is $13.36. The firm has a market capitalization of $3.09 billion, a price-to-earnings ratio of -8.75 and a beta of 2.64.

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

Insiders Place Their Bets

In other SoundHound AI news, COO Michael Zagorsek sold 73,406 shares of the business’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 $828,019.68. Following the completion of the sale, the chief operating officer owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CTO Timothy Stonehocker sold 29,676 shares of the firm’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the transaction, the chief technology officer directly owned 544,179 shares in the company, valued at $6,530,148. This trade represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 462,265 shares of company stock worth $5,216,518 in the last quarter. Insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Northwestern Mutual Wealth Management Co. grew its stake in SoundHound AI by 83.1% in the 2nd 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. Dogwood Wealth Management LLC raised its stake in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S purchased a new position in SoundHound AI in the third quarter valued at about $26,000. Advisors Asset Management Inc. increased its position in SoundHound AI by 68.4% in the second 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 during the last quarter. Finally, Investors Research Corp raised its stake 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 acquiring an additional 700 shares during the period. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.