SoundHound AI (NASDAQ:SOUN) Stock Falls 3.6% – Here’s What Happened

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 3.6% during trading on Monday. The company traded as low as $5.83 and last traded at $5.83. Approximately 14,620,024 shares changed hands during mid-day trading, a decline of 47% from the average daily volume of 27,772,795 shares. The stock had previously closed at $6.05.

Analysts Set New Price Targets

A number of research analysts recently weighed in on SOUN shares. Piper Sandler lowered their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. DA Davidson cut their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. Finally, Wall Street Zen cut SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $12.75.

SoundHound AI Price Performance

The stock’s 50-day simple moving average is $6.62 and its two-hundred day simple moving average is $7.10. The firm has a market capitalization of $2.59 billion, a P/E ratio of -15.37 and a beta of 2.66.

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

Insiders Place Their Bets

In related news, SVP Majid Emami sold 38,730 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the sale, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. This trade represents a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the insider directly owned 1,105,555 shares in the company, valued at $6,998,163.15. This trade represents a 3.38% decrease in their position. 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 have sold 288,758 shares of company stock valued at $1,828,598 over the last three months. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in SOUN. Prospera Financial Services Inc lifted its position in shares of SoundHound AI by 5.9% in the fourth quarter. Prospera Financial Services Inc now owns 30,690 shares of the company’s stock worth $306,000 after buying an additional 1,699 shares in the last quarter. Hilltop Holdings Inc. increased its position in SoundHound AI by 3.5% in the first quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock worth $353,000 after purchasing an additional 1,753 shares during the last quarter. Sterling Investment Counsel LLC lifted its position in SoundHound AI by 10.5% during the first quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company’s stock valued at $157,000 after purchasing an additional 2,173 shares during the last quarter. Empowered Funds LLC lifted its position in SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after purchasing an additional 2,277 shares during the last quarter. Finally, Hollencrest Capital Management lifted its holdings in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.