SoundHound AI (NASDAQ:SOUN) Shares Gap Down - What's Next?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $17.98, but opened at $16.58. SoundHound AI shares last traded at $16.33, with a volume of 15,447,227 shares.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on SOUN. LADENBURG THALM/SH SH reaffirmed a "neutral" rating and issued a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Barclays reaffirmed a "neutral" rating and set a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. Wedbush increased their price objective on SoundHound AI from $10.00 to $22.00 and gave the company an "outperform" rating in a report on Monday, December 16th. HC Wainwright boosted their target price on shares of SoundHound AI from $8.00 to $26.00 and gave the stock a "buy" rating in a report on Monday, December 23rd. Finally, DA Davidson reissued a "buy" rating and issued a $9.50 price objective on shares of SoundHound AI in a research report on Monday, September 30th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $12.07.

SoundHound AI Price Performance

The stock has a market capitalization of $5.55 billion, a price-to-earnings ratio of -41.72 and a beta of 2.63. The company's 50-day simple moving average is $12.72 and its 200-day simple moving average is $7.61. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $25.10 million during the quarter, compared to analysts' expectations of $23.02 million. During the same period last year, the firm posted ($0.09) EPS. The firm's revenue for the quarter was up 88.7% compared to the same quarter last year. Research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, Director Lawrence Marcus sold 30,000 shares of the business'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 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 transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Michael Zagorsek sold 277,813 shares of the firm's stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $21.25, for a total value of $5,903,526.25. Following the sale, the chief operating officer now directly owns 1,473,322 shares in the company, valued at approximately $31,308,092.50. This trade represents a 15.86 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,782,918 shares of company stock valued at $45,391,343 in the last ninety days. 12.28% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Bank of New York Mellon Corp lifted its holdings in shares of SoundHound AI by 92.7% during the second quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company's stock worth $3,940,000 after purchasing an additional 479,912 shares during the period. Principal Financial Group Inc. lifted its holdings in SoundHound AI by 106.6% during the 2nd quarter. Principal Financial Group Inc. now owns 38,340 shares of the company's stock worth $151,000 after buying an additional 19,780 shares during the period. Commonwealth Equity Services LLC grew its position in shares of SoundHound AI by 31.2% in the 2nd quarter. Commonwealth Equity Services LLC now owns 388,877 shares of the company's stock valued at $1,536,000 after buying an additional 92,449 shares during the last quarter. Rhumbline Advisers increased its stake in shares of SoundHound AI by 106.6% in the second quarter. Rhumbline Advisers now owns 360,167 shares of the company's stock valued at $1,423,000 after buying an additional 185,861 shares during the period. Finally, National Bank of Canada FI raised its position in shares of SoundHound AI by 52.4% during the second quarter. National Bank of Canada FI now owns 31,118 shares of the company's stock worth $121,000 after acquiring an additional 10,700 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

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.