SoundHound AI (NASDAQ:SOUN) Trading Down 10.5% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price fell 10.5% during mid-day trading on Monday . The stock traded as low as $8.67 and last traded at $8.72. 12,527,420 shares traded hands during trading, a decline of 70% from the average session volume of 42,034,521 shares. The stock had previously closed at $9.74.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SOUN. DA Davidson lifted their target price on shares of SoundHound AI from $9.50 to $13.00 and gave the stock a “buy” rating in a research report on Friday, February 28th. Wedbush increased their price objective on SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a research note on Monday, December 16th. LADENBURG THALM/SH SH restated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a report on Wednesday, November 13th. Cantor Fitzgerald upgraded shares of SoundHound AI to a “hold” rating in a research report on Monday, February 24th. Finally, HC Wainwright restated a “buy” rating and set a $26.00 price objective on shares of SoundHound AI in a report on Monday, March 3rd. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $12.86.

SoundHound AI Price Performance

The firm has a market capitalization of $3.36 billion, a price-to-earnings ratio of -23.72 and a beta of 2.62. 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 business has a 50-day moving average price of $13.49 and a two-hundred day moving average price of $10.17.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, February 27th. The company reported ($0.69) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.58). SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm had revenue of $34.54 million for the quarter, compared to analyst estimates of $33.70 million. As a group, research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Transactions at SoundHound AI

In related news, CEO Keyvan Mohajer sold 121,194 shares of SoundHound AI stock in a transaction on Friday, December 20th. The stock was sold at an average price of $20.30, for a total value of $2,460,238.20. Following the transaction, the chief executive officer now directly owns 2,177,954 shares in the company, valued at $44,212,466.20. The trade was a 5.27 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider James Ming Hom sold 58,382 shares of the stock in a transaction on Monday, December 16th. The shares were sold at an average price of $18.35, for a total value of $1,071,309.70. Following the completion of the transaction, the insider now owns 754,811 shares of the company’s stock, 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. Over the last three months, insiders sold 1,024,777 shares of company stock worth $20,412,443. Company insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in SOUN. Kieckhefer Group LLC bought a new stake in SoundHound AI during the fourth quarter valued at about $3,432,000. Charles Schwab Investment Management Inc. increased its position in SoundHound AI by 7.9% during the third quarter. Charles Schwab Investment Management Inc. now owns 2,582,206 shares of the company’s stock worth $12,033,000 after acquiring an additional 189,109 shares during the period. Oriental Harbor Investment Fund acquired a new position in SoundHound AI during the 4th quarter valued at $8,964,000. Geode Capital Management LLC boosted its holdings in SoundHound AI by 9.1% in the 3rd quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company’s stock valued at $33,529,000 after purchasing an additional 602,311 shares during the period. Finally, Wealth Effects LLC acquired a new stake in SoundHound AI in the 4th quarter worth $357,000. 19.28% of the stock is 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.