SoundHound AI (NASDAQ:SOUN) Shares Down 7.6% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) fell 7.6% on Tuesday . The company traded as low as $8.49 and last traded at $8.72. 18,224,903 shares traded hands during trading, a decline of 67% from the average session volume of 55,737,184 shares. The stock had previously closed at $9.43.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on SOUN. Northland Securities lifted their price target on SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 14th. Wedbush upped their target price on SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research note on Monday, December 16th. HC Wainwright reissued a “buy” rating and set a $26.00 price target on shares of SoundHound AI in a research note on Monday, January 13th. Barclays restated a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a report on Wednesday, November 13th. Finally, Cantor Fitzgerald raised shares of SoundHound AI to a “hold” rating in a report on Monday. Four research analysts have rated the stock with a hold rating and three have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $12.36.

SoundHound AI Stock Down 5.9 %

The stock has a market cap of $3.49 billion, a P/E ratio of -24.65 and a beta of 2.56. 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 company has a 50-day simple moving average of $16.04 and a two-hundred day simple moving average of $9.82.

Insider Activity at SoundHound AI

In other news, COO Michael Zagorsek sold 277,813 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $21.25, for a total transaction of $5,903,526.25. Following the transaction, the chief operating officer now directly owns 1,473,322 shares of the company’s stock, valued at approximately $31,308,092.50. The trade was a 15.86 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Timothy Stonehocker sold 34,407 shares of the company’s stock in a transaction that occurred on Friday, December 20th. The shares were sold at an average price of $20.30, for a total value of $698,462.10. Following the transaction, the chief technology officer now owns 796,581 shares of the company’s stock, valued at approximately $16,170,594.30. This represents a 4.14 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 2,722,918 shares of company stock worth $44,935,943 in the last three months. 12.28% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Creative Planning bought a new stake in shares of SoundHound AI during the 3rd quarter valued at about $91,000. Sequoia Financial Advisors LLC lifted its holdings in SoundHound AI by 40.9% in the third quarter. Sequoia Financial Advisors LLC now owns 29,133 shares of the company’s stock worth $136,000 after buying an additional 8,450 shares during the period. Signaturefd LLC lifted its holdings in SoundHound AI by 19.5% in the third quarter. Signaturefd LLC now owns 12,255 shares of the company’s stock worth $57,000 after buying an additional 2,000 shares during the period. International Assets Investment Management LLC boosted its position in SoundHound AI by 914.6% during the 3rd quarter. International Assets Investment Management LLC now owns 80,152 shares of the company’s stock valued at $374,000 after acquiring an additional 72,252 shares in the last quarter. Finally, Nisa Investment Advisors LLC grew its holdings in shares of SoundHound AI by 2,198.7% during the 3rd quarter. Nisa Investment Advisors LLC now owns 88,111 shares of the company’s stock worth $411,000 after acquiring an additional 84,278 shares during the period. 19.28% of the stock is owned by hedge funds and other 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.