SoundHound AI (NASDAQ:SOUN) Trading Down 7% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 7% during mid-day trading on Tuesday . The company traded as low as $20.65 and last traded at $21.10. 24,088,212 shares changed hands during trading, a decline of 42% from the average session volume of 41,203,910 shares. The stock had previously closed at $22.68.

Wall Street Analyst Weigh In

Several analysts have issued reports on SOUN shares. DA Davidson reaffirmed a “buy” rating and set a $9.50 price target on shares of SoundHound AI in a research report on Monday, September 30th. HC Wainwright raised their target price on shares of SoundHound AI from $8.00 to $26.00 and gave the company a “buy” rating in a research note on Monday, December 23rd. LADENBURG THALM/SH SH reaffirmed a “neutral” rating and set a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. Barclays restated a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, Wedbush increased their price target on shares of SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a report on Monday, December 16th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.07.

SoundHound AI Trading Down 12.5 %

The stock has a market cap of $7.34 billion, a P/E ratio of -55.11 and a beta of 3.03. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The business’s 50 day simple moving average is $11.60 and its two-hundred day simple moving average is $7.15.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. During the same quarter last year, the business earned ($0.09) EPS. The firm’s quarterly revenue was up 88.7% on a year-over-year basis. As a group, analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, Director Eric R. Ball sold 30,000 shares of the stock in a transaction dated Monday, November 25th. The stock was sold at an average price of $8.03, for a total transaction of $240,900.00. Following the completion of the sale, the director now directly owns 110,907 shares in the company, valued at approximately $890,583.21. This trade represents a 21.29 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Lawrence Marcus sold 20,000 shares of the company’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $20.47, for a total value of $409,400.00. Following the sale, the director now owns 108,117 shares in the company, valued at approximately $2,213,154.99. The trade was a 15.61 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,782,918 shares of company stock valued at $45,391,343 over the last 90 days. 12.28% of the stock is owned by insiders.

Institutional Trading of SoundHound AI

Several hedge funds have recently modified their holdings of the stock. Bank of New York Mellon Corp raised its holdings in shares of SoundHound AI by 92.7% during the second quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company’s stock valued at $3,940,000 after purchasing an additional 479,912 shares during the period. Principal Financial Group Inc. raised its stake in SoundHound AI by 106.6% during the 2nd quarter. Principal Financial Group Inc. now owns 38,340 shares of the company’s stock worth $151,000 after buying an additional 19,780 shares during the period. Signaturefd LLC grew its stake in SoundHound AI by 27.3% in the second quarter. Signaturefd LLC now owns 10,255 shares of the company’s stock valued at $41,000 after acquiring an additional 2,200 shares during the period. International Assets Investment Management LLC bought a new stake in shares of SoundHound AI during the second quarter valued at approximately $31,000. Finally, Concurrent Investment Advisors LLC raised its position in shares of SoundHound AI by 25.4% during the second quarter. Concurrent Investment Advisors LLC now owns 42,394 shares of the company’s stock worth $167,000 after purchasing an additional 8,594 shares during the period. Institutional investors own 19.28% of the company’s stock.

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.