SoundHound AI (NASDAQ:SOUN) Shares Down 8% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 8% on Monday . The stock traded as low as $19.73 and last traded at $20.03. 41,639,182 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 40,440,020 shares. The stock had previously closed at $21.76.

Analyst Upgrades and Downgrades

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

SoundHound AI Price Performance

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 $7.46 billion, a PE ratio of -56.03 and a beta of 3.03. The business has a 50-day moving average price of $9.01 and a 200 day moving average price of $6.23.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, beating the consensus estimate of ($0.07) by $0.01. The business had revenue of $25.10 million for the quarter, compared to the consensus estimate of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The company’s revenue 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. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Eric R. Ball sold 30,000 shares of the business’s stock in a transaction on Monday, November 25th. The shares were sold at an average price of $8.03, for a total transaction of $240,900.00. Following the completion of the transaction, the director now directly owns 110,907 shares in the company, valued at $890,583.21. The trade was a 21.29 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider James Ming Hom sold 58,382 shares of the stock in a transaction on Monday, December 16th. The stock was sold at an average price of $18.35, for a total value of $1,071,309.70. Following the completion of the sale, the insider now owns 754,811 shares in the company, valued at $13,850,781.85. This trade represents a 7.18 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,258,242 shares of company stock worth $34,752,649 over the last 90 days. Corporate insiders own 12.28% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in SOUN. Carnegie Investment Counsel purchased a new stake in SoundHound AI in the third quarter valued at approximately $4,193,000. Geode Capital Management LLC increased its holdings in shares of SoundHound AI by 9.1% in the 3rd quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company’s stock worth $33,529,000 after buying an additional 602,311 shares during the last quarter. Bank of New York Mellon Corp raised its position in shares of SoundHound AI by 92.7% during the 2nd 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. Shellback Capital LP bought a new stake in shares of SoundHound AI during the 2nd quarter worth $1,196,000. Finally, Squarepoint Ops LLC grew its position in SoundHound AI by 818.0% in the second quarter. Squarepoint Ops LLC now owns 231,168 shares of the company’s stock worth $913,000 after acquiring an additional 205,985 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors.

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.