SoundHound AI (NASDAQ:SOUN) Trading Down 2.7% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 2.7% during mid-day trading on Thursday . The company traded as low as $6.88 and last traded at $6.97. 21,856,891 shares changed hands during trading, a decline of 24% from the average daily volume of 28,844,324 shares. The stock had previously closed at $7.16.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 15th. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. Piper Sandler lowered 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 report on Thursday, August 6th. DA Davidson cut their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $13.60.

SoundHound AI Trading Down 2.7%

The company has a market cap of $3.10 billion, a P/E ratio of -18.34 and a beta of 2.64. The company’s fifty day moving average is $6.70 and its 200 day moving average is $7.42.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results 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. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. During the same period in the prior year, the business posted ($0.19) earnings per share. The company’s revenue was up 45.0% on a year-over-year basis. Analysts anticipate that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Insider Activity at SoundHound AI

In related 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 transaction of $215,168.78. Following the transaction, the senior vice president directly owned 472,983 shares in the company, valued at $3,528,453.18. This trade represents a 5.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 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 $140,262.92. Following the completion of the transaction, the chief technology officer directly owned 502,290 shares in the company, valued at $3,747,083.40. This trade represents a 3.61% 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. Insiders sold a total of 268,022 shares of company stock worth $1,999,444 over the last three months. Corporate insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SOUN. Vanguard Group Inc. grew its holdings in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after purchasing an additional 273,097 shares during the period. Morgan Stanley grew its position in shares of SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after buying an additional 2,917,280 shares during the period. State Street Corp lifted its position in SoundHound AI by 0.9% during the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after acquiring an additional 80,908 shares during the period. Finally, UBS Group AG boosted its stake in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after acquiring an additional 2,676,707 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.