SoundHound AI (NASDAQ:SOUN) Stock Price Down 7% After Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 7% during trading on Wednesday following insider selling activity. The stock traded as low as $12.70 and last traded at $13.23. Approximately 35,650,461 shares were traded during mid-day trading, a decline of 6% from the average daily volume of 37,732,242 shares. The stock had previously closed at $14.23.

Specifically, CEO Keyvan Mohajer sold 368,041 shares of the firm’s stock in a transaction dated Friday, December 6th. The shares were sold at an average price of $15.00, for a total value of $5,520,615.00. Following the completion of the sale, the chief executive officer now directly owns 2,299,148 shares of the company’s stock, valued at approximately $34,487,220. This trade represents a 13.80 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Keyvan Mohajer sold 465,394 shares of the firm’s stock in a transaction dated 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 $34,579,185.92. This trade represents a 16.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, VP Majid Emami sold 368,662 shares of the stock in a transaction that occurred on Friday, December 6th. The stock was sold at an average price of $15.00, for a total value of $5,529,930.00. Following the completion of the transaction, the vice president now owns 735,685 shares of the company’s stock, valued at approximately $11,035,275. This represents a 33.38 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on SOUN. Wedbush reiterated an “outperform” rating and set a $9.00 target price on shares of SoundHound AI in a report on Thursday, September 26th. LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. HC Wainwright boosted their price objective on shares of SoundHound AI from $7.00 to $8.00 and gave the stock a “buy” rating in a report on Thursday, November 14th. Barclays reiterated a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, 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. Three analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $7.64.

SoundHound AI Stock Performance

The stock has a market capitalization of $4.78 billion, a PE ratio of -36.75 and a beta of 3.03. The business’s 50 day moving average is $6.88 and its 200 day moving average is $5.48. 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 issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.01. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The firm had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. During the same period last year, the company earned ($0.09) EPS. SoundHound AI’s quarterly revenue was up 88.7% compared to the same quarter last year. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. State Street Corp increased its holdings in SoundHound AI by 0.6% in the third quarter. State Street Corp now owns 7,197,414 shares of the company’s stock valued at $33,540,000 after buying an additional 42,869 shares in the last quarter. Geode Capital Management LLC boosted its position in SoundHound AI by 9.1% during the third quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company’s stock worth $33,529,000 after purchasing an additional 602,311 shares in the last quarter. Charles Schwab Investment Management Inc. grew its holdings in SoundHound AI by 7.9% in the third quarter. Charles Schwab Investment Management Inc. now owns 2,582,206 shares of the company’s stock valued at $12,033,000 after purchasing an additional 189,109 shares during the period. Bank of New York Mellon Corp increased its position in shares of SoundHound AI by 92.7% in the second quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company’s stock valued at $3,940,000 after buying an additional 479,912 shares in the last quarter. Finally, Carnegie Investment Counsel acquired a new position in shares of SoundHound AI during the 3rd quarter worth approximately $4,193,000. Institutional investors and hedge funds 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.