SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares gapped down before the market opened on Friday . The stock had previously closed at $15.25, but opened at $11.14. SoundHound AI shares last traded at $11.51, with a volume of 80,125,043 shares changing hands.

Analyst Ratings Changes

Several brokerages recently issued reports on SOUN. Northland Securities upped their price objective on shares of SoundHound AI from $6.00 to $8.00 and gave the company a “market perform” rating in a research note on Tuesday, January 14th. Barclays reaffirmed a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. HC Wainwright reaffirmed a “buy” rating and set a $26.00 price target on shares of SoundHound AI in a research note on Monday, January 13th. Wedbush increased their price target on shares of SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research note on Monday, December 16th. Finally, LADENBURG THALM/SH SH reaffirmed a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI presently has a consensus rating of “Moderate Buy” and an average price target of $12.36.

SoundHound AI Stock Performance

The stock’s 50 day moving average price is $16.70 and its 200 day moving average price is $9.45. 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 market cap of $4.30 billion, a PE ratio of -30.51 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to the consensus estimate of $23.02 million. During the same quarter last year, the firm posted ($0.09) EPS. The business’s revenue for the quarter was up 88.7% compared to the same quarter last year. As a group, equities analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In related news, VP Majid Emami sold 37,459 shares of the firm’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $20.30, for a total transaction of $760,417.70. Following the completion of the sale, the vice president now directly owns 698,226 shares of the company’s stock, valued at approximately $14,173,987.80. This trade represents a 5.09 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Lawrence Marcus sold 30,000 shares of the firm’s stock in a transaction on Thursday, November 21st. The shares were sold at an average price of $7.15, for a total transaction of $214,500.00. Following the sale, the director now directly owns 178,117 shares of the company’s stock, valued at approximately $1,273,536.55. The trade was a 14.41 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 2,782,918 shares of company stock valued at $45,391,343. Company insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Beck Capital Management LLC acquired a new position in SoundHound AI during the 4th quarter worth $617,000. Price T Rowe Associates Inc. MD grew its holdings in SoundHound AI by 501.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 901,687 shares of the company’s stock worth $17,891,000 after acquiring an additional 751,857 shares in the last quarter. OneDigital Investment Advisors LLC acquired a new position in SoundHound AI during the 4th quarter worth $264,000. TD Waterhouse Canada Inc. grew its holdings in SoundHound AI by 53.2% during the 4th quarter. TD Waterhouse Canada Inc. now owns 6,893 shares of the company’s stock worth $137,000 after acquiring an additional 2,393 shares in the last quarter. Finally, MetLife Investment Management LLC grew its holdings in SoundHound AI by 12.0% during the 4th quarter. MetLife Investment Management LLC now owns 185,334 shares of the company’s stock worth $3,677,000 after acquiring an additional 19,859 shares in the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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.