SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price gapped down prior to trading on Thursday . The stock had previously closed at $13.55, but opened at $13.07. SoundHound AI shares last traded at $13.41, with a volume of 10,318,741 shares traded.

Analyst Ratings Changes

Several brokerages recently issued reports on SOUN. Barclays reiterated a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. Wedbush reiterated an “outperform” rating and set a $9.00 target price on shares of SoundHound AI in a report on Thursday, September 26th. DA Davidson restated a “buy” rating and issued a $9.50 target price on shares of SoundHound AI in a research note on Monday, September 30th. LADENBURG THALM/SH SH reaffirmed a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, HC Wainwright raised their price objective on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a research report on Thursday, November 14th. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $7.64.

SoundHound AI Trading Up 23.7 %

The stock has a 50-day moving average of $7.48 and a two-hundred day moving average of $5.68. The company has a market cap of $6.25 billion, a P/E ratio of -46.97 and a beta of 3.03. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.01. The firm had revenue of $25.10 million for the quarter, compared to analysts’ expectations of $23.02 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The company’s quarterly revenue was up 88.7% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.09) earnings per share. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other news, CTO Timothy Stonehocker sold 20,337 shares of the firm’s stock in a transaction dated Friday, September 20th. The shares were sold at an average price of $4.88, for a total transaction of $99,244.56. Following the sale, the chief technology officer now owns 1,039,194 shares of the company’s stock, valued at $5,071,266.72. This trade represents a 1.92 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Michael Zagorsek sold 42,001 shares of the business’s stock in a transaction that occurred on Friday, September 20th. The shares were sold at an average price of $4.88, for a total transaction of $204,964.88. Following the transaction, the chief operating officer now directly owns 1,473,322 shares of the company’s stock, valued at $7,189,811.36. The trade was a 2.77 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 2,035,416 shares of company stock valued at $26,334,544. Insiders own 12.28% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the stock. Charles Schwab Investment Management Inc. boosted its stake in shares of SoundHound AI by 7.9% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,582,206 shares of the company’s stock worth $12,033,000 after buying an additional 189,109 shares during the last quarter. Carnegie Investment Counsel bought a new position in SoundHound AI in the third quarter valued at about $4,193,000. Intech Investment Management LLC bought a new stake in shares of SoundHound AI during the 3rd quarter valued at about $305,000. Victory Capital Management Inc. increased its position in shares of SoundHound AI by 230.9% during the 3rd quarter. Victory Capital Management Inc. now owns 120,812 shares of the company’s stock valued at $563,000 after purchasing an additional 84,301 shares during the last quarter. Finally, Meridian Wealth Management LLC bought a new position in shares of SoundHound AI in the 3rd quarter worth approximately $431,000. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.