SoundHound AI (NASDAQ:SOUN) Stock Price Down 10.5% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 10.5% during trading on Monday . The stock traded as low as $8.67 and last traded at $8.72. Approximately 12,527,420 shares were traded during trading, a decline of 70% from the average daily volume of 42,034,521 shares. The stock had previously closed at $9.74.

Wall Street Analyst Weigh In

A number of research firms have issued reports on SOUN. Wedbush lifted their price objective on SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research note on Monday, December 16th. Barclays restated a “neutral” rating and set a $7.00 price objective on shares of SoundHound AI in a research report on Wednesday, November 13th. DA Davidson boosted their target price on SoundHound AI from $9.50 to $13.00 and gave the company a “buy” rating in a research report on Friday, February 28th. Northland Securities raised their price target on SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a research report on Tuesday, January 14th. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI to a “hold” rating in a research report on Monday, February 24th. Four analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $12.86.

SoundHound AI Trading Down 12.3 %

The company’s 50-day simple moving average is $14.00 and its 200 day simple moving average is $10.12. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $3.36 billion, a PE ratio of -23.74 and a beta of 2.62.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, February 27th. The company reported ($0.69) earnings per share for the quarter, missing the consensus estimate of ($0.11) by ($0.58). The firm had revenue of $34.54 million during the quarter, compared to analyst estimates of $33.70 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, Director Lawrence Marcus sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, December 12th. The shares were sold at an average price of $14.00, for a total transaction of $350,000.00. Following the transaction, the director now owns 128,117 shares in the company, valued at approximately $1,793,638. This represents a 16.33 % decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO Michael Zagorsek sold 138,906 shares of SoundHound AI stock in a transaction on Monday, December 16th. The stock was sold at an average price of $17.63, for a total transaction of $2,448,912.78. Following the sale, the chief operating officer now owns 1,473,322 shares of the company’s stock, valued at $25,974,666.86. The trade was a 8.62 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,024,777 shares of company stock valued at $20,412,443 in the last ninety days. Corporate insiders own 12.28% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently made changes to their positions in SOUN. Blue Trust Inc. lifted its position in SoundHound AI by 197.6% during the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock valued at $25,000 after purchasing an additional 830 shares during the period. Sound Income Strategies LLC lifted its holdings in shares of SoundHound AI by 2,542.0% in the 4th quarter. Sound Income Strategies LLC now owns 1,321 shares of the company’s stock valued at $26,000 after buying an additional 1,271 shares during the period. Orion Capital Management LLC purchased a new stake in shares of SoundHound AI in the fourth quarter worth about $30,000. Future Financial Wealth Managment LLC acquired a new stake in SoundHound AI during the fourth quarter worth about $40,000. Finally, Compagnie Lombard Odier SCmA purchased a new position in SoundHound AI during the fourth quarter valued at approximately $40,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.