SoundHound AI (NASDAQ:SOUN) Shares Down 1.9% – Here’s What Happened

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) fell 1.9% during mid-day trading on Wednesday. The stock traded as low as $4.55 and last traded at $4.61. Approximately 11,228,800 shares were traded during mid-day trading, a decline of 58% from the average daily volume of 26,797,873 shares. The stock had previously closed at $4.70.

Analysts Set New Price Targets

Several analysts have commented on the company. DA Davidson cut their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Yorkville Ives assumed coverage on SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target on the stock. Weiss Ratings upgraded SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Finally, Piper Sandler decreased their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $11.50.

SoundHound AI Trading Down 0.8%

The firm has a market capitalization of $1.98 billion, a P/E ratio of -11.75 and a beta of 2.73. The stock has a 50 day simple moving average of $6.12 and a 200-day simple moving average of $6.91.

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, 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 company had revenue of $61.90 million for the quarter, compared to the consensus estimate of $52.38 million. During the same quarter last year, the firm posted ($0.19) earnings per share. The firm’s revenue was up 45.0% compared to the same quarter last year. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.32 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other news, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the insider directly owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. The trade was a 3.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $869,045.70. Following the completion of the transaction, the chief executive officer owned 3,684,947 shares of the company’s stock, valued at approximately $23,325,714.51. The trade was a 3.59% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 288,758 shares of company stock worth $1,828,598. 8.84% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

Several hedge funds have recently bought and sold shares of the stock. Sterling Capital Management LLC lifted its position in shares of SoundHound AI by 883.1% in the third quarter. Sterling Capital Management LLC now owns 13,812 shares of the company’s stock worth $83,000 after buying an additional 12,407 shares in the last quarter. SBI Securities Co. Ltd. lifted its holdings in SoundHound AI by 14.5% during the 3rd quarter. SBI Securities Co. Ltd. now owns 108,959 shares of the company’s stock valued at $656,000 after buying an additional 13,815 shares in the last quarter. Element Pointe Advisors LLC purchased a new stake in shares of SoundHound AI in the 3rd quarter worth $66,000. Genesee Capital Advisors LLC purchased a new position in SoundHound AI during the third quarter valued at approximately $118,000. Finally, Abel Hall LLC bought a new position in SoundHound AI in the third quarter worth about $70,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.