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

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 1.4% on Wednesday . The stock traded as low as $6.44 and last traded at $6.48. Approximately 24,945,938 shares were traded during mid-day trading, a decline of 13% from the average session volume of 28,551,607 shares. The stock had previously closed at $6.57.

Analyst Ratings Changes

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

SoundHound AI Stock Down 1.4%

The business’s 50-day moving average price is $6.76 and its 200-day moving average price is $7.32. The firm has a market capitalization of $2.88 billion, a PE ratio of -17.05 and a beta of 2.66.

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

Insider Transactions at SoundHound AI

In other news, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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 the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the sale, the chief executive officer owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% 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 269,365 shares of company stock valued at $2,009,047 over the last 90 days. Corporate insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Hedge funds have recently modified their holdings of the stock. EP Wealth Advisors LLC raised its position in SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after purchasing an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. raised its position in shares of SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after acquiring an additional 830 shares during the last quarter. Parallel Advisors LLC raised its position in shares of SoundHound AI by 42.8% during the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company’s stock worth $52,000 after acquiring an additional 960 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in shares of SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares during the period. Finally, Integrated Wealth Concepts LLC boosted its holdings in SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after acquiring an additional 1,201 shares during the last quarter. 19.28% of the stock is owned by 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.