SoundHound AI (NASDAQ:SOUN) Shares Gap Down - Here's Why

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price gapped down before the market opened 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 trading hands.

Analysts Set New Price Targets

SOUN has been the subject of several recent analyst reports. Northland Securities raised their target price on SoundHound AI from $6.00 to $8.00 and gave the stock a "market perform" rating in a research note on Tuesday, January 14th. HC Wainwright reissued a "buy" rating and set a $26.00 target price on shares of SoundHound AI in a research note on Monday, March 3rd. Cantor Fitzgerald raised shares of SoundHound AI to a "hold" rating in a research note on Monday, February 24th. DA Davidson upped their price objective on shares of SoundHound AI from $9.50 to $13.00 and gave the company a "buy" rating in a report on Friday, February 28th. Finally, Wedbush raised their target price on SoundHound AI from $10.00 to $22.00 and gave the company an "outperform" rating in a research note on Monday, December 16th. Four analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $12.86.

SoundHound AI Stock Down 4.2 %

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58. The company has a market cap of $3.31 billion, a P/E ratio of -23.06 and a beta of 2.62. The stock has a fifty day moving average price of $11.36 and a two-hundred day moving average price of $10.65.

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SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Thursday, February 27th. The company reported ($0.69) EPS for the quarter, missing analysts' consensus estimates 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 net margin of 163.58% and a negative return on equity of 55.58%. On average, research analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, VP Majid Emami sold 28,392 shares of the firm's stock in a transaction on Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $281,080.80. Following the completion of the sale, the vice president now directly owns 669,834 shares of the company's stock, valued at $6,631,356.60. This trade represents a 4.07 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider James Ming Hom sold 51,196 shares of the company's stock in a transaction on Monday, March 24th. The shares were sold at an average price of $10.25, for a total value of $524,759.00. Following the transaction, the insider now directly owns 638,456 shares in the company, valued at $6,544,174. This represents a 7.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 500,565 shares of company stock worth $4,999,726 over the last three months. 12.28% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the company. Kieckhefer Group LLC purchased a new position in shares of SoundHound AI in the fourth quarter worth about $3,432,000. Charles Schwab Investment Management Inc. boosted its holdings in SoundHound AI by 7.9% in the 3rd quarter. Charles Schwab Investment Management Inc. now owns 2,582,206 shares of the company's stock worth $12,033,000 after buying an additional 189,109 shares during the period. Oriental Harbor Investment Fund purchased a new position in SoundHound AI in the 4th quarter valued at approximately $8,964,000. Geode Capital Management LLC grew its stake in SoundHound AI by 9.1% in 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 purchased a new stake in shares of SoundHound AI during the fourth quarter worth $357,000. Hedge funds and other institutional investors 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.