SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.2% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 3.2% during mid-day trading on Wednesday . The company traded as low as $5.01 and last traded at $5.10. Approximately 7,280,470 shares were traded during mid-day trading, a decline of 79% from the average daily volume of 34,092,508 shares. The stock had previously closed at $5.27.

Wall Street Analysts Forecast Growth

SOUN has been the subject of a number of research analyst reports. Wedbush reaffirmed an “outperform” rating and issued a $9.00 price target on shares of SoundHound AI in a report on Thursday, September 26th. DA Davidson reiterated a “buy” rating and issued a $9.50 price objective on shares of SoundHound AI in a research note on Monday, September 30th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price objective for the stock from $5.00 to $7.00 in a research note on Friday, August 9th. Northland Securities increased their price objective on shares of SoundHound AI from $5.50 to $6.00 and gave the stock a “market perform” rating in a research note on Friday, August 9th. Finally, HC Wainwright reiterated a “buy” rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, September 18th. One investment analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $7.08.

SoundHound AI Stock Down 1.9 %

The company has a market cap of $1.71 billion, a price-to-earnings ratio of -13.84 and a beta of 2.73. The company’s 50-day moving average is $4.89 and its 200 day moving average is $4.74.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, August 8th. The company reported ($0.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.09) by ($0.02). SoundHound AI had a negative net margin of 195.65% and a negative return on equity of 93.28%. The company had revenue of $13.46 million during the quarter, compared to analyst estimates of $13.09 million. During the same quarter last year, the business earned ($0.10) EPS. The firm’s revenue for the quarter was up 53.8% compared to the same quarter last year. Analysts predict that SoundHound AI, Inc. will post -0.36 EPS for the current fiscal year.

Insider Activity

In other news, Director Lawrence Marcus sold 50,000 shares of SoundHound AI stock in a transaction dated Tuesday, August 20th. The shares were sold at an average price of $5.02, for a total value of $251,000.00. Following the sale, the director now owns 74,038 shares in the company, valued at $371,670.76. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, Director Lawrence Marcus sold 50,000 shares of the firm’s stock in a transaction dated Tuesday, August 20th. The shares were sold at an average price of $5.02, for a total value of $251,000.00. Following the transaction, the director now directly owns 74,038 shares of the company’s stock, valued at approximately $371,670.76. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider James Ming Hom sold 21,024 shares of the firm’s stock in a transaction dated Friday, September 20th. The stock was sold at an average price of $4.88, for a total transaction of $102,597.12. Following the completion of the transaction, the insider now directly owns 865,965 shares in the company, valued at approximately $4,225,909.20. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 327,275 shares of company stock worth $1,606,644 over the last 90 days. 21.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently modified their holdings of SOUN. Global Assets Advisory LLC purchased a new position in shares of SoundHound AI in the first quarter worth about $819,000. Sovereign Financial Group Inc. purchased a new position in SoundHound AI during the first quarter worth about $163,000. Wealthcare Advisory Partners LLC purchased a new position in SoundHound AI during the first quarter worth about $85,000. Hexagon Capital Partners LLC purchased a new position in SoundHound AI during the first quarter worth about $29,000. Finally, Principal Financial Group Inc. raised its stake in SoundHound AI by 16.5% during the first quarter. Principal Financial Group Inc. now owns 18,560 shares of the company’s stock worth $109,000 after purchasing an additional 2,629 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.