SoundHound AI (NASDAQ:SOUN) Trading Down 3.7% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 3.7% during trading on Friday . The company traded as low as $8.45 and last traded at $8.56. Approximately 5,548,298 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 38,062,605 shares. The stock had previously closed at $8.88.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on SOUN shares. Wedbush lifted their price objective on shares of SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a report on Monday, December 16th. HC Wainwright reiterated a “buy” rating and issued a $26.00 price objective on shares of SoundHound AI in a report on Monday, March 3rd. Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a report on Monday, February 24th. Northland Securities upped their target price 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. Finally, DA Davidson lifted their price target on shares of SoundHound AI from $9.50 to $13.00 and gave the stock a “buy” rating in a research note on Friday, February 28th. Four investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $12.86.

SoundHound AI Stock Performance

The firm has a market cap of $3.38 billion, a P/E ratio of -23.51 and a beta of 2.62. The business’s fifty day simple moving average is $11.89 and its 200-day simple moving average is $10.50. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 27th. The company reported ($0.69) EPS for the quarter, missing analysts’ consensus estimates 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 business had revenue of $34.54 million for the quarter, compared to the consensus estimate of $33.70 million. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Keyvan Mohajer sold 118,605 shares of the stock in a transaction that occurred on Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $1,174,189.50. Following the completion of the transaction, the chief executive officer now owns 1,903,061 shares of the company’s stock, valued at approximately $18,840,303.90. This represents a 5.87 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider James Ming Hom sold 28,388 shares of SoundHound AI stock in a transaction that occurred on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total value of $281,041.20. Following the sale, the insider now owns 689,652 shares in the company, valued at $6,827,554.80. This represents a 3.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 500,565 shares of company stock worth $4,999,726. 12.28% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SOUN. Vanguard Group Inc. grew its holdings in SoundHound AI by 35.6% in the fourth quarter. Vanguard Group Inc. now owns 32,031,662 shares of the company’s stock worth $635,508,000 after purchasing an additional 8,402,881 shares during the period. Rockefeller Capital Management L.P. bought a new stake in shares of SoundHound AI in the 4th quarter worth approximately $41,595,000. Invesco Ltd. grew its stake in shares of SoundHound AI by 1,386.2% in the 4th quarter. Invesco Ltd. now owns 1,382,371 shares of the company’s stock worth $27,426,000 after buying an additional 1,289,360 shares during the last quarter. Driehaus Capital Management LLC bought a new position in SoundHound AI during the 4th quarter valued at approximately $16,421,000. Finally, Capital Fund Management S.A. purchased a new position in SoundHound AI during the fourth quarter valued at $16,092,000. 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.