SoundHound AI (NASDAQ:SOUN) Stock Price Down 7.1% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares dropped 7.1% on Tuesday . The stock traded as low as $12.71 and last traded at $13.07. Approximately 25,338,579 shares traded hands during trading, a decline of 61% from the average daily volume of 64,823,898 shares. The stock had previously closed at $14.07.

Analyst Upgrades and Downgrades

Several equities analysts have commented on SOUN shares. DA Davidson reissued a “buy” rating and issued a $9.50 price target on shares of SoundHound AI in a research report on Monday, September 30th. 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. Wedbush upped 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. Barclays reiterated a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, HC Wainwright restated a “buy” rating and set a $26.00 target price on shares of SoundHound AI in a research note on Monday, January 13th. Three analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $12.36.

SoundHound AI Trading Up 1.1 %

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 $5.26 billion, a PE ratio of -39.53 and a beta of 2.63. The business has a fifty day moving average price of $15.07 and a 200 day moving average price of $8.64.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, topping 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 company had revenue of $25.10 million for the quarter, compared to analysts’ expectations of $23.02 million. During the same quarter last year, the company earned ($0.09) earnings per share. The firm’s revenue for the quarter was up 88.7% on a year-over-year basis. Analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, Director Eric R. Ball sold 30,000 shares of SoundHound AI stock in a transaction that occurred on Monday, November 25th. The stock was sold at an average price of $8.03, for a total transaction of $240,900.00. Following the transaction, the director now owns 110,907 shares of the company’s stock, valued at $890,583.21. The trade was a 21.29 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Majid Emami sold 94,067 shares of the stock in a transaction that occurred on Monday, December 2nd. The shares were sold at an average price of $9.05, for a total value of $851,306.35. Following the completion of the sale, the vice president now directly owns 735,685 shares of the company’s stock, valued at $6,657,949.25. The trade was a 11.34 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,782,918 shares of company stock valued at $45,391,343 over the last ninety days. Insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Newbridge Financial Services Group Inc. acquired a new stake in shares of SoundHound AI during the fourth quarter worth about $548,000. Stephens Inc. AR acquired a new stake in SoundHound AI during the 4th quarter worth approximately $1,169,000. Golden State Wealth Management LLC purchased a new position in shares of SoundHound AI in the 4th quarter valued at approximately $42,000. Strategic Financial Concepts LLC acquired a new position in shares of SoundHound AI in the fourth quarter valued at approximately $207,000. Finally, Choreo LLC raised its stake in shares of SoundHound AI by 7.6% during the fourth quarter. Choreo LLC now owns 14,424 shares of the company’s stock worth $309,000 after purchasing an additional 1,015 shares during the last quarter. 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.