SoundHound AI (NASDAQ:SOUN) Shares Down 7.9% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 7.9% on Friday . The company traded as low as $13.30 and last traded at $13.84. 30,279,938 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 67,896,195 shares. The stock had previously closed at $15.02.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on SOUN shares. HC Wainwright upped their price objective on shares of SoundHound AI from $8.00 to $26.00 and gave the company a “buy” rating in a research note on Monday, December 23rd. DA Davidson restated a “buy” rating and set a $9.50 price target on shares of SoundHound AI in a research note on Monday, September 30th. Wedbush lifted their price target on SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research report on Monday, December 16th. Barclays reissued a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a report on Wednesday, November 13th. Finally, LADENBURG THALM/SH SH reiterated a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. Three equities research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, SoundHound AI currently has an average rating of “Moderate Buy” and an average price target of $12.07.

SoundHound AI Stock Down 6.2 %

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 firm has a 50 day simple moving average of $13.29 and a two-hundred day simple moving average of $7.81. The company has a market capitalization of $5.21 billion, a PE ratio of -39.14 and a beta of 2.63.

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

Insider Transactions at SoundHound AI

In related news, Director Lawrence Marcus sold 30,000 shares of the company’s stock in a transaction on Thursday, November 21st. The stock was sold at an average price of $7.15, for a total transaction of $214,500.00. Following the transaction, the director now owns 178,117 shares of the company’s stock, valued at $1,273,536.55. This represents a 14.41 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Timothy Stonehocker sold 34,407 shares of the business’s stock in a transaction on Friday, December 20th. The stock was sold at an average price of $20.30, for a total transaction of $698,462.10. Following the sale, the chief technology officer now owns 796,581 shares in the company, valued at $16,170,594.30. The trade was a 4.14 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 2,782,918 shares of company stock worth $45,391,343 over the last ninety days. 12.28% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. ST Germain D J Co. Inc. lifted its position in shares of SoundHound AI by 33.2% during the 4th quarter. ST Germain D J Co. Inc. now owns 3,008 shares of the company’s stock valued at $60,000 after acquiring an additional 750 shares during the period. Oriental Harbor Investment Fund acquired a new position in SoundHound AI during the fourth quarter worth $8,964,000. Stonehearth Capital Management LLC purchased a new stake in SoundHound AI during the fourth quarter worth $303,000. Silverleafe Capital Partners LLC acquired a new stake in SoundHound AI in the fourth quarter valued at $377,000. Finally, Franklin Resources Inc. purchased a new position in shares of SoundHound AI in the third quarter valued at $177,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

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.