SoundHound AI (NASDAQ:SOUN) Stock Price Down 12.3% – Should You Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) fell 12.3% on Tuesday . The stock traded as low as $8.92 and last traded at $9.05. 27,468,656 shares changed hands during mid-day trading, a decline of 36% from the average session volume of 42,812,396 shares. The stock had previously closed at $10.32.

Wall Street Analyst Weigh In

Several research firms recently weighed in on SOUN. LADENBURG THALM/SH SH restated a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. Wedbush upped their price objective on shares of SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research report on Monday, December 16th. Barclays restated a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. Northland Securities upped their price objective on shares of SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 14th. Finally, DA Davidson increased their price target on shares of SoundHound AI from $9.50 to $13.00 and gave the company a “buy” rating in a research report on Friday. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, SoundHound AI has a consensus rating of “Hold” and a consensus target price of $12.86.

SoundHound AI Price Performance

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 business’s 50-day simple moving average is $14.99 and its 200 day simple moving average is $9.99. The firm has a market capitalization of $3.82 billion, a P/E ratio of -27.00 and a beta of 2.56.

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

Insider Activity

In other news, CEO Keyvan Mohajer sold 465,394 shares of the stock in a transaction that occurred on Monday, December 9th. The stock was sold at an average price of $15.04, for a total transaction of $6,999,525.76. Following the completion of the sale, the chief executive officer now owns 2,299,148 shares of the company’s stock, valued at approximately $34,579,185.92. This represents a 16.83 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP Majid Emami sold 368,662 shares of the stock in a transaction that occurred on Friday, December 6th. The shares were sold at an average price of $15.00, for a total value of $5,529,930.00. Following the sale, the vice president now directly owns 735,685 shares of the company’s stock, valued at approximately $11,035,275. This trade represents a 33.38 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 2,628,851 shares of company stock valued at $44,084,637. 12.28% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Commons Capital LLC lifted its stake in SoundHound AI by 2.7% in the fourth quarter. Commons Capital LLC now owns 27,349 shares of the company’s stock worth $543,000 after acquiring an additional 723 shares during the period. ST Germain D J Co. Inc. lifted its stake in SoundHound AI by 33.2% in the fourth quarter. ST Germain D J Co. Inc. now owns 3,008 shares of the company’s stock worth $60,000 after acquiring an additional 750 shares during the period. Keynote Financial Services LLC lifted its stake in SoundHound AI by 4.7% in the fourth quarter. Keynote Financial Services LLC now owns 16,587 shares of the company’s stock worth $329,000 after acquiring an additional 752 shares during the period. Blue Trust Inc. lifted its stake in SoundHound AI by 197.6% in the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock worth $25,000 after acquiring an additional 830 shares during the period. Finally, Russell Investments Group Ltd. lifted its stake in SoundHound AI by 16.4% in the fourth quarter. Russell Investments Group Ltd. now owns 6,598 shares of the company’s stock worth $131,000 after acquiring an additional 929 shares during the period. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.