SoundHound AI (NASDAQ:SOUN) Trading Down 10% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price dropped 10% during mid-day trading on Tuesday . The stock traded as low as $17.71 and last traded at $17.91. Approximately 38,097,168 shares were traded during trading, a decline of 39% from the average daily volume of 62,788,605 shares. The stock had previously closed at $19.89.

Analyst Ratings Changes

A number of research firms have recently commented on SOUN. Barclays reaffirmed a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. DA Davidson reiterated a “buy” rating and set a $9.50 price target on shares of SoundHound AI in a report on Monday, September 30th. HC Wainwright upped their target price on SoundHound AI from $8.00 to $26.00 and gave the company a “buy” rating in a research report on Monday, December 23rd. LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a report on Wednesday, November 13th. Finally, Wedbush increased their price target on SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a report on Monday, December 16th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $12.07.

SoundHound AI Stock Down 9.3 %

The stock has a market cap of $6.67 billion, a price-to-earnings ratio of -50.11 and a beta of 2.63. The stock has a 50 day simple moving average of $12.48 and a 200 day simple moving average of $7.52. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business had revenue of $25.10 million during the quarter, compared to the consensus estimate of $23.02 million. During the same quarter last year, the firm posted ($0.09) EPS. SoundHound AI’s revenue was up 88.7% compared to the same quarter last year. As a group, analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 465,394 shares of the stock in a transaction dated Monday, December 9th. The shares were sold at an average price of $15.04, for a total value of $6,999,525.76. Following the completion of the sale, the chief executive officer now owns 2,299,148 shares in the company, valued at approximately $34,579,185.92. This trade represents a 16.83 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Majid Emami sold 37,459 shares of the business’s stock in a transaction that occurred on Friday, December 20th. The stock was sold at an average price of $20.30, for a total value of $760,417.70. Following the completion of the transaction, the vice president now owns 698,226 shares in the company, valued at $14,173,987.80. The trade was a 5.09 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,782,918 shares of company stock worth $45,391,343 in the last quarter. Insiders own 12.28% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently bought and sold shares of the business. Bank of New York Mellon Corp increased its position in shares of SoundHound AI by 92.7% during the 2nd quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company’s stock valued at $3,940,000 after purchasing an additional 479,912 shares during the last quarter. Principal Financial Group Inc. grew its position in SoundHound AI by 106.6% during the second quarter. Principal Financial Group Inc. now owns 38,340 shares of the company’s stock valued at $151,000 after buying an additional 19,780 shares during the period. Commonwealth Equity Services LLC increased its holdings in SoundHound AI by 31.2% during the second quarter. Commonwealth Equity Services LLC now owns 388,877 shares of the company’s stock worth $1,536,000 after buying an additional 92,449 shares during the last quarter. Rhumbline Advisers raised its position in SoundHound AI by 106.6% in the second quarter. Rhumbline Advisers now owns 360,167 shares of the company’s stock worth $1,423,000 after acquiring an additional 185,861 shares during the period. Finally, National Bank of Canada FI boosted its stake in SoundHound AI by 52.4% in the second quarter. National Bank of Canada FI now owns 31,118 shares of the company’s stock valued at $121,000 after acquiring an additional 10,700 shares during the last quarter. 19.28% of the stock is currently owned by 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.