SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.9% – Here’s Why
by Mitch Edgeman · The Markets DailySoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) fell 5.9% on Monday . The company traded as low as $7.01 and last traded at $6.9950. Approximately 7,903,870 shares traded hands during mid-day trading, a decline of 72% from the average session volume of 28,722,377 shares. The stock had previously closed at $7.43.
Analyst Ratings Changes
Several research analysts have recently commented on SOUN shares. DA Davidson cut their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Piper Sandler lowered their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a report on Saturday. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, SoundHound AI has a consensus rating of “Moderate Buy” and an average target price of $13.60.
SoundHound AI Price Performance
The stock has a 50 day moving average price of $6.71 and a 200-day moving average price of $7.48. The stock has a market capitalization of $3.13 billion, a P/E ratio of -18.51 and a beta of 2.64.
SoundHound AI (NASDAQ:SOUN – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate 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 analysts’ expectations of $52.38 million. During the same quarter last year, the business earned ($0.19) earnings per share. The business’s revenue was up 45.0% on a year-over-year basis. Research analysts predict that SoundHound AI, Inc. will post -0.33 earnings per share for the current fiscal year.
Insider Activity
In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This trade represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the transaction, the insider directly owned 743,521 shares of the company’s stock, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their ownership of the stock. 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. In the last three months, insiders have sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by company insiders.
Hedge Funds Weigh In On SoundHound AI
Several large investors have recently modified their holdings of the stock. Morgan Stanley boosted its stake in SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. UBS Group AG lifted its holdings in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC boosted its position in shares of SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after buying an additional 2,106,298 shares during the last quarter. Vanguard Group Inc. increased its holdings in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after buying an additional 1,909,868 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in SoundHound AI in the 3rd quarter worth about $21,679,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.
About SoundHound AI
SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.
The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.