SoundHound AI (NASDAQ:SOUN) Trading Down 6.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 6.4% during mid-day trading on Tuesday . The stock traded as low as $6.44 and last traded at $6.44. Approximately 20,499,013 shares were traded during mid-day trading, a decline of 25% from the average daily volume of 27,353,273 shares. The stock had previously closed at $6.88.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the company. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. HC Wainwright decreased their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. DA Davidson reissued a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Piper Sandler restated a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The firm has a 50-day moving average of $7.96 and a 200 day moving average of $8.72. The stock has a market capitalization of $2.79 billion, a price-to-earnings ratio of -13.70 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. SoundHound AI’s quarterly revenue was up 51.7% on a year-over-year basis. On average, equities analysts forecast that SoundHound AI, Inc. will post -0.45 earnings per share for the current year.

Insider Buying and Selling

In other news, CEO Keyvan Mohajer sold 126,540 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 transaction of $943,988.40. Following the completion of the transaction, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the business’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 value of $484,855.24. Following the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at $12,454,447.62. The trade was a 3.75% decrease in their ownership of the stock. 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 268,022 shares of company stock worth $1,999,444 in the last 90 days. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

A number of hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in shares of SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after buying an additional 1,909,868 shares during the period. Geode Capital Management LLC raised its holdings in 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 acquiring an additional 273,097 shares during the period. Morgan Stanley raised its holdings in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the period. State Street Corp lifted its position in SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after acquiring an additional 80,908 shares during the last quarter. Finally, UBS Group AG lifted its position 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 during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

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.