SoundHound AI (NASDAQ:SOUN) Shares Gap Down - Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price gapped down prior to trading on Monday . The stock had previously closed at $8.50, but opened at $8.07. SoundHound AI shares last traded at $8.08, with a volume of 5,003,911 shares changing hands.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. DA Davidson increased 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. Wedbush lifted their target price 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. Northland Securities boosted their target price on shares of SoundHound AI from $6.00 to $8.00 and gave the stock a "market perform" rating in a research report on Tuesday, January 14th. HC Wainwright reaffirmed a "buy" rating and issued a $26.00 price target on shares of SoundHound AI in a report on Monday, March 3rd. Finally, Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a report on Monday, February 24th. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $12.86.

SoundHound AI Stock Performance

The firm's 50 day simple moving average is $11.51 and its 200 day simple moving average is $10.66. The firm has a market capitalization of $3.27 billion, a price-to-earnings ratio of -22.78 and a beta of 2.62. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58.

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SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, February 27th. The company reported ($0.69) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.11) by ($0.58). The business had revenue of $34.54 million for the quarter, compared to analysts' expectations of $33.70 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. Sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In related news, Director Diana Sroka sold 3,402 shares of the business's stock in a transaction on Monday, March 24th. The shares were sold at an average price of $10.08, for a total value of $34,292.16. Following the completion of the transaction, the director now directly owns 138,850 shares in the company, valued at $1,399,608. The trade was a 2.39 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider James Ming Hom sold 28,388 shares of the firm's stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total transaction of $281,041.20. Following the sale, the insider now owns 689,652 shares in the company, valued at approximately $6,827,554.80. This represents a 3.95 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 500,565 shares of company stock worth $4,999,726 over the last quarter. 12.28% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently modified their holdings of the company. Kieckhefer Group LLC acquired a new position in SoundHound AI in the 4th quarter worth about $3,432,000. Charles Schwab Investment Management Inc. increased its position in shares of SoundHound AI by 7.9% in the third quarter. Charles Schwab Investment Management Inc. now owns 2,582,206 shares of the company's stock valued at $12,033,000 after buying an additional 189,109 shares in the last quarter. Oriental Harbor Investment Fund acquired a new position in shares of SoundHound AI during the 4th quarter worth approximately $8,964,000. Geode Capital Management LLC lifted its position in shares of SoundHound AI by 9.1% during the 3rd quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company's stock valued at $33,529,000 after buying an additional 602,311 shares in the last quarter. Finally, Wealth Effects LLC acquired a new stake in SoundHound AI in the 4th quarter valued at $357,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.