SoundHound AI (NASDAQ:SOUN) Trading Down 1.8% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 1.8% during mid-day trading on Wednesday . The company traded as low as $6.22 and last traded at $6.3230. 28,131,715 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 27,378,916 shares. The stock had previously closed at $6.44.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SOUN. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Piper Sandler reissued a “neutral” rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson reaffirmed a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The firm’s 50 day simple moving average is $7.96 and its 200 day simple moving average is $8.68. The firm has a market capitalization of $2.74 billion, a price-to-earnings ratio of -13.45 and a beta of 2.56.

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

Insider Activity at SoundHound AI

In other news, CEO Keyvan Mohajer sold 126,540 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. The trade was a 6.10% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares in the company, valued at $5,546,666.66. The trade was a 3.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock worth $1,999,444 in the last three months. Company insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently bought and sold shares of SOUN. Vanguard Group Inc. grew its stake in shares of SoundHound AI by 16.4% during the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley boosted its holdings in SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after buying an additional 2,917,280 shares in the last quarter. UBS Group AG grew its position in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after buying an additional 2,676,707 shares during the period. Voloridge Investment Management LLC grew its position in SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after buying an additional 2,106,298 shares during the period. Finally, Jump Financial LLC purchased a new position in SoundHound AI in the third quarter valued at $21,679,000. 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.