SoundHound AI (NASDAQ:SOUN) Shares Down 2.5% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 2.5% on Tuesday . The company traded as low as $6.47 and last traded at $6.57. Approximately 39,221,797 shares traded hands during mid-day trading, an increase of 37% from the average daily volume of 28,559,805 shares. The stock had previously closed at $6.74.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Piper Sandler lowered their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a report on Thursday, August 6th. Wall Street Zen cut SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, DA Davidson dropped their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $13.60.

SoundHound AI Trading Down 2.5%

The company has a market cap of $2.92 billion, a price-to-earnings ratio of -17.29 and a beta of 2.66. The business has a fifty day moving average of $6.76 and a two-hundred day moving average of $7.33.

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

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 28,843 shares of the firm’s stock in a transaction that occurred 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 transaction, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This trade represents a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 269,365 shares of company stock valued at $2,009,047. 8.84% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of the business. Danske Bank A S purchased a new stake in SoundHound AI during the 3rd quarter valued at about $26,000. Northwestern Mutual Wealth Management Co. lifted 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 worth $25,000 after purchasing an additional 1,060 shares in the last quarter. SHP Wealth Management acquired a new position in shares of SoundHound AI during the 4th quarter worth approximately $27,000. Parallel Advisors LLC grew its position in shares of SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock valued at $52,000 after purchasing an additional 960 shares in the last quarter. Finally, Hollencrest Capital Management grew its position in shares of SoundHound AI by 197.5% in 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. 19.28% of the stock is 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.