SoundHound AI (NASDAQ:SOUN) Sets New 12-Month Low – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares hit a new 52-week low during mid-day trading on Thursday. The stock traded as low as $3.70 and last traded at $3.6590, with a volume of 4,479,320 shares traded. The stock had previously closed at $3.91.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SOUN. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. DA Davidson cut their target price on shares of SoundHound AI from $10.00 to $5.00 and set a “buy” rating on the stock in a research note on Friday, November 6th. Oppenheimer reiterated a “market perform” rating on shares of SoundHound AI in a report on Friday, November 6th. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. Finally, Yorkville Ives started coverage on shares of SoundHound AI in a research report on Monday, October 5th. They issued an “in-line” rating and a $6.50 price target for the company. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, SoundHound AI presently has a consensus rating of “Hold” and a consensus price target of $9.50.

SoundHound AI Stock Performance

The company has a 50 day moving average of $5.31 and a 200 day moving average of $6.93. The stock has a market capitalization of $1.63 billion, a price-to-earnings ratio of -17.55 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.07. The company had revenue of $62.43 million for the quarter, compared to analyst estimates of $61.71 million. SoundHound AI had a negative return on equity of 13.35% and a negative net margin of 33.17%. SoundHound AI’s revenue for the quarter was up 48.5% compared to the same quarter last year. During the same quarter last year, the company earned ($0.03) EPS. As a group, research analysts expect that SoundHound AI, Inc. will post -0.39 EPS for the current fiscal year.

Insider Activity

In related news, COO Michael Zagorsek sold 71,113 shares of the firm’s 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 $450,145.29. Following the sale, the chief operating officer owned 2,600,231 shares of the company’s stock, 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 legal filing with the Securities & Exchange Commission, which is available 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 stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the insider owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. This 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 a total of 288,758 shares of company stock valued at $1,828,598 over the last three months. 8.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the company. Hilltop Holdings Inc. lifted its position in shares of SoundHound AI by 3.5% during the 1st 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. Empowered Funds LLC increased its holdings in shares of SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after acquiring an additional 2,277 shares during the last quarter. Hollencrest Capital Management raised its holdings in 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. Keynote Financial Services LLC boosted its holdings in shares of SoundHound AI by 6.9% in the 1st quarter. Keynote Financial Services LLC now owns 37,321 shares of the company’s stock valued at $256,000 after buying an additional 2,405 shares in the last quarter. Finally, Allworth Financial LP boosted its holdings in shares of SoundHound AI by 12.7% in the 2nd quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock valued at $146,000 after buying an additional 2,537 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

SoundHound AI develops voice and conversational artificial intelligence technology for businesses. Its platform is designed to let people interact with products and services using natural speech, without relying solely on preset commands or menus. The company offers voice assistants and conversational tools for industries including automotive, restaurants, and consumer electronics. Its products include Houndify, a platform for building voice-enabled applications, and SoundHound Chat AI, which combines conversational voice technology with generative AI.