SoundHound AI (NASDAQ:SOUN) Hits New 12-Month Low – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $5.79 and last traded at $5.8250, with a volume of 25097742 shares changing hands. The stock had previously closed at $6.24.

More SoundHound AI News

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: MUSC Health expanded its deployment of SoundHound’s AI agent platform to retail and specialty pharmacies after the “Emily” AI agent handled more than 2.2 million patient calls across the health system. The announcement provides evidence of real-world usage, customer expansion and potential recurring revenue for SoundHound’s healthcare business. MUSC Health expands use of SoundHound’s AI agent platform
• Positive Sentiment: Analyst sentiment remains favorable: SoundHound received a consensus “Moderate Buy” recommendation. A separate bullish analysis cited a potential $47.5 billion voice-AI market, SoundHound’s conversational-AI capabilities and data-sovereignty advantages, and identified the LivePerson acquisition and transaction-based revenue as growth catalysts. SoundHound receives Moderate Buy recommendation SoundHound voice AI market analysis
• Neutral Sentiment: LivePerson’s board urged shareholders to approve its transaction with SoundHound AI and announced an investor town hall for August 5. Approval could broaden SoundHound’s customer-AI offering, but the deal still carries execution and integration risks. LivePerson urges shareholders to approve SoundHound transaction
• Negative Sentiment: A law firm solicited SoundHound shareholders regarding a possible investigation into whether company insiders breached fiduciary duties. The notice does not establish wrongdoing, but it adds headline and governance risk. SoundHound shareholder fiduciary-duty investigation notice
• Negative Sentiment: Fundamental concerns remain: SoundHound recently missed quarterly EPS expectations, remains unprofitable, and analysts expect a full-year loss. Those risks may be offsetting the positive customer and market-expansion news.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on SOUN shares. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. DA Davidson reiterated a “buy” rating and set a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Trading Down 6.3%

The company has a market capitalization of $2.53 billion, a price-to-earnings ratio of -12.44 and a beta of 2.62. The company’s 50 day simple moving average is $7.09 and its 200-day simple moving average is $7.85.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data 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). The firm had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business’s quarterly revenue was up 51.7% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.06) EPS. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling

In other news, COO Michael Zagorsek sold 64,994 shares of SoundHound AI stock in a transaction 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 completion of the sale, the chief operating officer owned 1,669,497 shares of the company’s stock, valued at $12,454,447.62. The trade was a 3.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares of the company’s stock, valued at $3,528,453.18. The trade was a 5.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 268,022 shares of company stock worth $1,999,444 in the last three months. 8.84% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Morgan Stanley lifted its holdings in shares of SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after acquiring an additional 2,917,280 shares during the period. UBS Group AG increased 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 purchasing an additional 2,676,707 shares during the last quarter. Voloridge Investment Management LLC increased its position in SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after purchasing an additional 2,106,298 shares during the last quarter. Vanguard Group Inc. raised its stake in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares during the period. Finally, Jump Financial LLC purchased a new position in SoundHound AI during the third quarter worth approximately $21,679,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.