SoundHound AI (NASDAQ:SOUN) Shares Down 3.2% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price dropped 3.2% during mid-day trading on Wednesday . The company traded as low as $5.01 and last traded at $5.10. Approximately 7,280,470 shares changed hands during trading, a decline of 79% from the average daily volume of 34,092,508 shares. The stock had previously closed at $5.27.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the stock. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $5.00 to $7.00 in a research report on Friday, August 9th. Northland Securities upped their price objective on shares of SoundHound AI from $5.50 to $6.00 and gave the company a “market perform” rating in a research note on Friday, August 9th. HC Wainwright restated a “buy” rating and issued a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, September 18th. Wedbush reiterated an “outperform” rating and set a $9.00 price objective on shares of SoundHound AI in a research report on Thursday, September 26th. Finally, DA Davidson restated a “buy” rating and issued a $9.50 target price on shares of SoundHound AI in a report on Monday, September 30th. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $7.08.

SoundHound AI Price Performance

The company has a market cap of $1.62 billion, a price-to-earnings ratio of -13.05 and a beta of 2.73. The firm has a 50 day simple moving average of $4.89 and a 200-day simple moving average of $4.74.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, August 8th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). The firm had revenue of $13.46 million during the quarter, compared to analysts’ expectations of $13.09 million. SoundHound AI had a negative net margin of 195.65% and a negative return on equity of 93.28%. SoundHound AI’s quarterly revenue was up 53.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.10) EPS. Research analysts anticipate that SoundHound AI, Inc. will post -0.36 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other news, CEO Keyvan Mohajer sold 90,641 shares of the company’s stock in a transaction on Friday, September 20th. The stock was sold at an average price of $4.88, for a total transaction of $442,328.08. Following the sale, the chief executive officer now owns 2,362,692 shares of the company’s stock, valued at approximately $11,529,936.96. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, Director Lawrence Marcus sold 50,000 shares of the business’s stock in a transaction on Tuesday, August 20th. The shares were sold at an average price of $5.02, for a total transaction of $251,000.00. Following the completion of the transaction, the director now owns 74,038 shares in the company, valued at approximately $371,670.76. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Keyvan Mohajer sold 90,641 shares of the company’s stock in a transaction dated Friday, September 20th. The stock was sold at an average price of $4.88, for a total value of $442,328.08. Following the transaction, the chief executive officer now directly owns 2,362,692 shares of the company’s stock, valued at approximately $11,529,936.96. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 327,275 shares of company stock worth $1,606,644. Corporate insiders own 21.30% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently made changes to their positions in SOUN. Global Assets Advisory LLC acquired a new position in shares of SoundHound AI during the first quarter worth about $819,000. Sovereign Financial Group Inc. acquired a new position in shares of SoundHound AI during the 1st quarter worth $163,000. Wealthcare Advisory Partners LLC acquired a new position in SoundHound AI during the first quarter worth $85,000. Hexagon Capital Partners LLC acquired a new position in SoundHound AI during the first quarter worth about $29,000. Finally, Principal Financial Group Inc. grew its position in shares of SoundHound AI by 16.5% in the first quarter. Principal Financial Group Inc. now owns 18,560 shares of the company’s stock valued at $109,000 after purchasing an additional 2,629 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.