SoundHound AI (NASDAQ:SOUN) Stock Falls 3.5% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 3.5% during mid-day trading on Friday. The company traded as low as $4.65 and last traded at $4.72. Approximately 17,818,633 shares traded hands during trading, a decline of 34% from the average daily volume of 27,035,342 shares. The stock had previously closed at $4.89.

Analyst Ratings Changes

A number of research firms have commented on SOUN. Wall Street Zen cut shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. Piper Sandler lowered their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. DA Davidson lowered 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 note on Thursday, August 6th. Finally, Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, SoundHound AI presently has an average rating of “Moderate Buy” and an average target price of $12.75.

SoundHound AI Trading Down 3.5%

The company has a fifty day moving average of $6.41 and a 200-day moving average of $6.98. The stock has a market cap of $2.10 billion, a PE ratio of -12.42 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations 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 for the quarter was up 45.0% on a year-over-year basis. During the same period last year, the business posted ($0.19) EPS. As a group, research analysts anticipate 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, CEO Keyvan Mohajer sold 137,290 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value 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. This trade represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, COO Michael Zagorsek sold 71,113 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were 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 directly owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. The trade was a 2.66% 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 a total of 288,758 shares of company stock worth $1,828,598 over the last ninety days. Company insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in the business. Swiss National Bank grew its stake in shares of SoundHound AI by 3.7% in the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock worth $5,270,000 after acquiring an additional 27,300 shares in the last quarter. California State Teachers Retirement System increased its position in shares of SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after acquiring an additional 87,998 shares during the period. AXQ Capital LP raised its stake in shares of SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after acquiring an additional 203,345 shares in the last quarter. SG Americas Securities LLC acquired a new stake in shares of SoundHound AI in the first quarter valued at $1,606,000. Finally, Virtu Financial LLC raised its stake in shares of SoundHound AI by 43.9% in the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company’s stock valued at $2,191,000 after acquiring an additional 67,088 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.