SoundHound AI (NASDAQ:SOUN) Shares Down 3.2% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 3.2% during mid-day trading on Thursday . The company traded as low as $10.90 and last traded at $10.92. 25,544,595 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 29,304,088 shares. The stock had previously closed at $11.28.

Analysts Set New Price Targets

Several research analysts have recently issued reports on SOUN shares. HC Wainwright raised their price objective on SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research note on Thursday, October 16th. DA Davidson set a $14.00 price objective on SoundHound AI in a report on Thursday, January 8th. Piper Sandler lowered their target price on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Two research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Trading Down 3.2%

The company has a fifty day moving average of $11.64 and a 200-day moving average of $13.55. The company has a market capitalization of $4.59 billion, a price-to-earnings ratio of -13.00 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The company had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. During the same quarter last year, the firm posted ($0.04) EPS. The firm’s revenue for the quarter was up 67.6% on a year-over-year basis. As a group, equities research analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity

In related news, CFO Nitesh Sharan sold 60,780 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the completion of the sale, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at approximately $19,234,069.44. This represents a 3.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, COO Michael Zagorsek sold 73,406 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the transaction, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. This trade represents a 3.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 462,265 shares of company stock worth $5,216,518. Insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its position 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 last quarter. Jump Financial LLC purchased a new stake in shares of SoundHound AI in the 3rd quarter valued at approximately $21,679,000. HRT Financial LP acquired a new position in SoundHound AI during the second quarter worth $11,914,000. Goldman Sachs Group Inc. increased its stake in SoundHound AI by 69.8% during the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after purchasing an additional 1,085,473 shares during the period. Finally, Bank of New York Mellon Corp lifted its holdings in SoundHound AI by 91.6% during the 2nd quarter. Bank of New York Mellon Corp now owns 1,762,827 shares of the company’s stock worth $18,915,000 after buying an additional 842,973 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.