SoundHound AI (NASDAQ:SOUN) Trading Down 7.9% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 7.9% on Friday . The stock traded as low as $13.30 and last traded at $13.84. 30,279,938 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 67,896,195 shares. The stock had previously closed at $15.02.

Analysts Set New Price Targets

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

SoundHound AI Price Performance

The company has a fifty day moving average of $13.29 and a 200-day moving average of $7.81. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13. The stock has a market cap of $5.21 billion, a PE ratio of -39.14 and a beta of 2.63.

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

Insider Buying and Selling at SoundHound AI

In related news, VP Majid Emami sold 94,067 shares of the firm’s stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $9.05, for a total value of $851,306.35. Following the sale, the vice president now owns 735,685 shares of the company’s stock, valued at $6,657,949.25. This trade represents a 11.34 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Lawrence Marcus sold 30,000 shares of SoundHound AI stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $7.15, for a total transaction of $214,500.00. Following the completion of the transaction, the director now owns 178,117 shares of the company’s stock, valued at $1,273,536.55. This represents a 14.41 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,782,918 shares of company stock valued at $45,391,343 in the last 90 days. Company insiders own 12.28% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of SOUN. Bank of New York Mellon Corp raised its stake in SoundHound AI by 92.7% in 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 buying an additional 479,912 shares in the last quarter. Principal Financial Group Inc. raised its position in shares of 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 acquiring an additional 19,780 shares in the last quarter. Commonwealth Equity Services LLC lifted its stake in SoundHound AI by 31.2% during the second quarter. Commonwealth Equity Services LLC now owns 388,877 shares of the company’s stock worth $1,536,000 after purchasing an additional 92,449 shares during the last quarter. Rhumbline Advisers boosted its holdings in SoundHound AI by 106.6% in the second quarter. Rhumbline Advisers now owns 360,167 shares of the company’s stock valued at $1,423,000 after purchasing an additional 185,861 shares in the last quarter. Finally, National Bank of Canada FI increased its stake in SoundHound AI by 52.4% in the second quarter. National Bank of Canada FI now owns 31,118 shares of the company’s stock valued at $121,000 after purchasing an additional 10,700 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.