SoundHound AI (NASDAQ:SOUN) Hits New 1-Year Low – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares hit a new 52-week low on Wednesday. The stock traded as low as $5.65 and last traded at $5.6470, with a volume of 808867 shares changing hands. The stock had previously closed at $5.72.

Analysts Set New Price Targets

SOUN has been the topic of a number of recent analyst reports. Piper Sandler cut their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. Wall Street Zen cut shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 26th. Finally, DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $12.75.

SoundHound AI Trading Down 1.4%

The firm has a fifty day simple moving average of $6.58 and a two-hundred day simple moving average of $7.04. The stock has a market cap of $2.51 billion, a PE ratio of -14.90 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.SoundHound AI’s revenue was up 45.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.19) earnings per share. Equities analysts forecast that SoundHound AI, Inc. will post -0.32 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, CEO Keyvan Mohajer sold 137,290 shares of SoundHound AI stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $869,045.70. Following the completion of the sale, the chief executive officer directly 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 position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the company’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $450,145.29. Following the completion of the transaction, the chief operating officer owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. This trade represents a 2.66% 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 288,758 shares of company stock worth $1,828,598 in the last 90 days. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently added to or reduced their stakes in the company. Hollencrest Capital Management increased its position in shares of SoundHound AI by 197.5% during the 1st 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 during the last quarter. SHP Wealth Management bought a new stake in SoundHound AI in the 4th quarter worth approximately $27,000. Vermillion Wealth Management Inc. boosted its stake in SoundHound AI by 92.0% in the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock worth $63,000 after buying an additional 4,409 shares in the last quarter. Clarus Group Inc. bought a new position in SoundHound AI during the first quarter valued at approximately $69,000. Finally, 180 Wealth Advisors LLC bought a new position in SoundHound AI during the first quarter valued at approximately $69,000. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.