SoundHound AI (NASDAQ:SOUN) Trading Down 7% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 7% on Monday . The company traded as low as $7.40 and last traded at $7.46. Approximately 35,431,424 shares traded hands during mid-day trading, an increase of 22% from the average session volume of 29,087,770 shares. The stock had previously closed at $8.02.

Analysts Set New Price Targets

A number of equities research analysts have commented on SOUN shares. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Piper Sandler lowered their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday. DA Davidson cut their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $14.00.

SoundHound AI Stock Down 7.0%

The firm has a fifty day moving average of $6.79 and a 200-day moving average of $7.58. The stock has a market capitalization of $3.23 billion, a price-to-earnings ratio of -19.63 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 31.06%. The firm had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. During the same period last year, the company posted ($0.06) EPS. The firm’s revenue for the quarter was up 51.7% on a year-over-year basis. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Majid Emami sold 28,843 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the sale, the senior vice president directly owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $943,988.40. Following the transaction, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. This trade represents a 6.10% 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. Over the last ninety days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Royal Bank of Canada lifted its stake in SoundHound AI by 71.3% in the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock valued at $1,301,000 after buying an additional 66,714 shares in the last quarter. Integrated Wealth Concepts LLC increased its position in SoundHound AI by 8.9% during the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after buying an additional 1,201 shares in the last quarter. NewEdge Advisors LLC increased its position in SoundHound AI by 12.9% during the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock worth $333,000 after buying an additional 4,692 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after acquiring an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of SoundHound AI by 10.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock valued at $5,620,000 after acquiring an additional 63,398 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.