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

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) hit a new 52-week low during mid-day trading on Thursday. The company traded as low as $4.03 and last traded at $4.0150, with a volume of 5,079,951 shares. The stock had previously closed at $4.32.

Analyst Ratings Changes

Several brokerages have commented on SOUN. DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Piper Sandler decreased their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday, October 24th. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Finally, Yorkville Ives initiated coverage on shares of SoundHound AI in a research report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target for the company. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $11.50.

SoundHound AI Trading Down 4.7%

The business has a fifty day simple moving average of $5.62 and a two-hundred day simple moving average of $7.10. The company has a market cap of $1.83 billion, a PE ratio of -10.83 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. The business had revenue of $61.90 million during the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company’s revenue for the quarter was up 45.0% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.19) earnings per share. Equities analysts expect that SoundHound AI, Inc. will post -0.39 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other news, COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $450,145.29. Following the transaction, the chief operating officer directly owned 2,600,231 shares in the company, valued at $16,459,462.23. The trade was a 2.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the transaction, the senior vice president directly owned 834,253 shares in the company, valued at $5,280,821.49. This trade represents a 4.44% 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. In the last three months, insiders sold 288,758 shares of company stock valued at $1,828,598. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the company. Hollencrest Capital Management boosted its holdings in 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 purchasing an additional 2,400 shares during the last quarter. Financial Management Professionals Inc. acquired a new stake in SoundHound AI during the third quarter worth $30,000. Fulcrum Asset Management LLP acquired a new stake in SoundHound AI during the third quarter worth $45,000. 180 Wealth Advisors LLC acquired a new stake in SoundHound AI during the first quarter worth $69,000. Finally, Krilogy Financial LLC purchased a new stake in SoundHound AI in the third quarter valued at $62,000. 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 and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.