SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.4% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 2.4% on Thursday. The company traded as low as $4.44 and last traded at $4.50. 10,954,915 shares traded hands during trading, a decline of 59% from the average daily volume of 26,718,189 shares. The stock had previously closed at $4.61.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. Yorkville Ives started coverage on SoundHound AI in a research note on Monday, October 5th. They issued an “in-line” rating and a $6.50 price target for the company. Piper Sandler lowered their price objective 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 downgraded SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, October 15th. Finally, DA Davidson decreased their price target 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. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $11.50.

SoundHound AI Trading Down 2.2%

The business’s 50 day moving average price is $6.18 and its two-hundred day moving average price is $6.92. The company has a market capitalization of $2.00 billion, a price-to-earnings ratio of -11.87 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last issued 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. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter last year, the business posted ($0.19) earnings per share. The company’s quarterly revenue was up 45.0% on a year-over-year basis. Analysts expect that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Buying and Selling

In related news, SVP Majid Emami sold 38,730 shares of the company’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 value of $245,160.90. Following the sale, the senior vice president directly owned 834,253 shares in the company, valued at $5,280,821.49. This represents a 4.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the sale, the chief operating officer directly owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. This represents a 2.66% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 288,758 shares of company stock valued at $1,828,598 in the last ninety days. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several large investors have recently modified their holdings of the company. Swiss National Bank raised its stake in SoundHound AI by 3.7% during the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock worth $5,270,000 after buying an additional 27,300 shares during the last quarter. California State Teachers Retirement System boosted its position in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after acquiring an additional 87,998 shares during the last quarter. Rockefeller Capital Management L.P. boosted its position in SoundHound AI by 3.5% during the fourth quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company’s stock valued at $1,788,000 after acquiring an additional 6,096 shares during the last quarter. AXQ Capital LP grew its holdings in SoundHound AI by 395.6% during the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after acquiring an additional 203,345 shares during the period. Finally, SG Americas Securities LLC acquired a new stake in SoundHound AI during the 1st quarter worth about $1,606,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

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.