SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares gapped down prior to trading on Monday . The stock had previously closed at $11.19, but opened at $10.65. SoundHound AI shares last traded at $10.28, with a volume of 9,604,464 shares changing hands.

Analyst Ratings Changes

A number of research analysts recently issued reports on SOUN shares. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $18.00 and set a “buy” rating on the stock in a research note on Monday, May 12th. Wedbush decreased their price objective on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating for the company in a research report on Friday, May 9th. Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a report on Monday, February 24th. Finally, DA Davidson reduced their price target on SoundHound AI from $13.00 to $10.00 and set a “buy” rating for the company in a report on Monday, April 14th. Four research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $10.29.

SoundHound AI Stock Down 7.3%

The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58. The firm has a fifty day moving average price of $9.08 and a 200 day moving average price of $11.58. The firm has a market capitalization of $4.14 billion, a price-to-earnings ratio of -28.89 and a beta of 2.71.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.03. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The firm had revenue of $29.13 million during the quarter, compared to the consensus estimate of $30.38 million. During the same period last year, the business posted ($0.07) EPS. SoundHound AI’s quarterly revenue was up 151.2% on a year-over-year basis. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 118,605 shares of the firm’s stock in a transaction that occurred on Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $1,174,189.50. Following the completion of the transaction, the chief executive officer now directly owns 1,903,061 shares of the company’s stock, valued at $18,840,303.90. This trade represents a 5.87% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Majid Emami sold 28,392 shares of the firm’s stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total value of $281,080.80. Following the completion of the transaction, the vice president now directly owns 669,834 shares of the company’s stock, valued at $6,631,356.60. The trade was a 4.07% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 548,537 shares of company stock valued at $5,567,760 in the last ninety days. Corporate insiders own 12.28% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds have recently bought and sold shares of SOUN. Hennion & Walsh Asset Management Inc. purchased a new position in SoundHound AI during the fourth quarter worth $756,000. Wealthcare Advisory Partners LLC increased its position in SoundHound AI by 55.3% during the fourth quarter. Wealthcare Advisory Partners LLC now owns 23,389 shares of the company’s stock worth $464,000 after buying an additional 8,329 shares in the last quarter. Commons Capital LLC increased its position in SoundHound AI by 2.7% during the fourth quarter. Commons Capital LLC now owns 27,349 shares of the company’s stock worth $543,000 after buying an additional 723 shares in the last quarter. SG Americas Securities LLC increased its position in SoundHound AI by 70.2% during the fourth quarter. SG Americas Securities LLC now owns 195,028 shares of the company’s stock worth $3,869,000 after buying an additional 80,448 shares in the last quarter. Finally, Janney Montgomery Scott LLC purchased a new position in SoundHound AI during the fourth quarter worth $411,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.