SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.4% – Should You Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) fell 1.4% during mid-day trading on Friday . The company traded as low as $6.84 and last traded at $6.90. 25,892,949 shares changed hands during trading, a decline of 6% from the average session volume of 27,481,713 shares. The stock had previously closed at $7.00.

Analysts Set New Price Targets

Several research analysts recently weighed in on SOUN shares. Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson reiterated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Trading Down 1.4%

The stock has a market capitalization of $2.99 billion, a P/E ratio of -14.68 and a beta of 2.56. The company has a fifty day simple moving average of $7.91 and a two-hundred day simple moving average of $8.94.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business’s revenue was up 51.7% compared to the same quarter last year. During the same period last year, the company earned ($0.06) earnings per share. As a group, analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider James Ming Hom sold 31,019 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the transaction, the insider directly owned 772,364 shares in the company, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the completion of the transaction, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. This represents a 2.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 over the last quarter. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently modified their holdings of the business. Hollencrest Capital Management grew its position in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after purchasing an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. grew its position in shares of 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 grew its position in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the period. Danske Bank A S acquired a new position in shares of SoundHound AI in the 3rd quarter valued at approximately $26,000. Finally, SHP Wealth Management acquired a new position in shares of SoundHound AI in the 4th quarter valued at approximately $27,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.