SoundHound AI (NASDAQ:SOUN) Shares Down 4.3% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 4.3% during mid-day trading on Tuesday . The company traded as low as $6.76 and last traded at $6.85. 26,285,517 shares changed hands during trading, a decline of 8% from the average daily volume of 28,612,813 shares. The stock had previously closed at $7.16.

Analyst Ratings Changes

SOUN has been the topic of several analyst reports. Wall Street Zen upgraded shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 15th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. DA Davidson lowered their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Piper Sandler cut their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $13.60.

SoundHound AI Trading Down 0.7%

The stock has a fifty day moving average of $6.73 and a 200-day moving average of $7.35. The firm has a market capitalization of $2.99 billion, a price-to-earnings ratio of -17.71 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. During the same period in the prior year, the business posted ($0.19) earnings per share. SoundHound AI’s revenue was up 45.0% compared to the same quarter last year. As a group, equities research analysts forecast that SoundHound AI, Inc. will post -0.33 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other news, insider James Ming Hom sold 28,843 shares of the firm’s stock in a transaction on 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 of the company’s stock, valued at $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of SoundHound AI stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This represents a 5.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 269,365 shares of company stock valued at $2,009,047 over the last three months. 8.84% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently bought and sold shares of the business. Hollencrest Capital Management grew its position in SoundHound AI by 197.5% during the first 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 in the last quarter. Northwestern Mutual Wealth Management Co. lifted its position 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 worth $25,000 after buying an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC boosted 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 valued at $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S purchased a new position in shares of SoundHound AI during the 3rd quarter valued at $26,000. Finally, SHP Wealth Management purchased a new position in shares of SoundHound AI during the 4th quarter valued at $27,000. 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.