SoundHound AI (NASDAQ:SOUN) Stock Falls 2.4% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) fell 2.4% during trading on Friday. The stock traded as low as $5.36 and last traded at $5.39. 11,791,945 shares changed hands during trading, a decline of 57% from the average daily volume of 27,252,738 shares. The stock had previously closed at $5.52.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SOUN. DA Davidson cut their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Piper Sandler decreased their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Wall Street Zen downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $12.75.

SoundHound AI Stock Down 2.4%

The business’s 50-day simple moving average is $6.56 and its two-hundred day simple moving average is $7.03. The firm has a market cap of $2.39 billion, a price-to-earnings ratio of -14.18 and a beta of 2.73.

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

Insider Activity at SoundHound AI

In other news, COO Michael Zagorsek sold 71,113 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $450,145.29. Following the sale, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. This trade represents a 2.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 the company’s 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 transaction, the insider owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. This trade represents a 3.38% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 288,758 shares of company stock worth $1,828,598 over the last 90 days. 8.84% of the stock is owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several institutional investors have recently bought and sold shares of SOUN. Hollencrest Capital Management increased its position in shares of SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares in the last quarter. SHP Wealth Management purchased a new stake in SoundHound AI during the 4th quarter valued at about $27,000. Vermillion Wealth Management Inc. raised its holdings in SoundHound AI by 92.0% in the 1st quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after acquiring an additional 4,409 shares during the last quarter. Clarus Group Inc. purchased a new position in SoundHound AI in the 1st quarter worth approximately $69,000. Finally, 180 Wealth Advisors LLC purchased a new stake in shares of SoundHound AI in the first quarter valued at approximately $69,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.