SoundHound AI (NASDAQ:SOUN) Trading Down 5.9% After Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN) was down 5.9% on Tuesday after an insider sold shares in the company. The stock traded as low as $18.20 and last traded at $18.52. Approximately 12,568,097 shares changed hands during trading, a decline of 68% from the average daily volume of 38,905,594 shares. The stock had previously closed at $19.69.

Specifically, Director Lawrence Marcus sold 25,000 shares of the firm’s stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $14.00, for a total value of $350,000.00. Following the completion of the transaction, the director now owns 128,117 shares in the company, valued at $1,793,638. This trade represents a 16.33 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on SOUN. Barclays reissued a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. HC Wainwright increased their price objective on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a report on Thursday, November 14th. LADENBURG THALM/SH SH restated a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a report on Wednesday, November 13th. DA Davidson reiterated a “buy” rating and issued a $9.50 price target on shares of SoundHound AI in a research note on Monday, September 30th. Finally, 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 research note on Monday. Three investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $9.50.

SoundHound AI Stock Down 8.0 %

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’s 50-day moving average price is $7.78 and its 200-day moving average price is $5.80. The stock has a market cap of $6.70 billion, a price-to-earnings ratio of -50.81 and a beta of 3.03.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. The firm had revenue of $25.10 million during 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 business’s revenue was up 88.7% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.09) earnings per share. On average, sell-side analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of SOUN. Essex LLC purchased a new stake in SoundHound AI during the 2nd quarter worth about $45,000. Keynote Financial Services LLC purchased a new stake in shares of SoundHound AI during the second quarter valued at approximately $59,000. Silverleafe Capital Partners LLC bought a new position in shares of SoundHound AI in the second quarter worth approximately $43,000. Planning Alternatives Ltd. ADV purchased a new position in shares of SoundHound AI in the second quarter worth $129,000. Finally, Clear Creek Financial Management LLC grew its holdings in SoundHound AI by 41.4% in the 2nd quarter. Clear Creek Financial Management LLC now owns 71,874 shares of the company’s stock worth $284,000 after acquiring an additional 21,042 shares during the last quarter. 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.