SoundHound AI (NASDAQ:SOUN) Stock Falls 1.6% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 1.6% during mid-day trading on Friday. The company traded as low as $4.35 and last traded at $4.43. 10,588,320 shares were traded during mid-day trading, a decline of 60% from the average daily volume of 26,640,232 shares. The stock had previously closed at $4.50.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on SOUN. Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. DA Davidson dropped their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Piper Sandler cut their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Yorkville Ives assumed coverage on SoundHound AI in a report on Monday, October 5th. They issued an “in-line” rating and a $6.50 price target on the stock. Finally, Wall Street Zen cut SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $11.50.

SoundHound AI Stock Performance

The firm has a fifty day simple moving average of $6.12 and a 200-day simple moving average of $6.91. The firm has a market cap of $1.97 billion, a price-to-earnings ratio of -11.66 and a beta of 2.73.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, insider James Hom sold 38,730 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 value 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. This represents a 3.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 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 stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. The trade was a 2.66% decrease in their position. 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. In the last 90 days, insiders sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently modified their holdings of the business. SG Americas Securities LLC acquired a new position in shares of SoundHound AI in the first quarter valued at about $1,606,000. AXQ Capital LP raised its stake in SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after purchasing an additional 203,345 shares in the last quarter. Corient Private Wealth LP raised its stake in SoundHound AI by 777.2% in the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock worth $1,144,000 after purchasing an additional 156,612 shares in the last quarter. Themes Management Co LLC boosted its holdings in SoundHound AI by 86.5% in the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after purchasing an additional 88,820 shares during the period. Finally, California State Teachers Retirement System boosted its holdings in SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after purchasing an additional 87,998 shares during the period. 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.