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

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $18.86, but opened at $18.20. SoundHound AI shares last traded at $17.75, with a volume of 8,841,553 shares.

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Wedbush increased their target price on shares of SoundHound AI from $10.00 to $22.00 and gave the company an "outperform" rating in a report on Monday. Barclays reaffirmed a "neutral" rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. HC Wainwright boosted their target price on SoundHound AI from $7.00 to $8.00 and gave the stock a "buy" rating in a research report on Thursday, November 14th. LADENBURG THALM/SH SH restated a "neutral" rating and issued a $7.00 price target on shares of SoundHound AI in a research report on Wednesday, November 13th. Finally, DA Davidson reaffirmed a "buy" rating and set a $9.50 price target on shares of SoundHound AI in a research note on Monday, September 30th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $9.50.

SoundHound AI Price Performance

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 firm has a market capitalization of $8.04 billion, a PE ratio of -60.42 and a beta of 3.03. The company has a 50-day moving average price of $8.67 and a 200-day moving average price of $6.09.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.07) by $0.01. The company had revenue of $25.10 million for the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm's quarterly revenue was up 88.7% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.09) EPS. Sell-side analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 63,544 shares of the business's stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $4.92, for a total value of $312,636.48. Following the completion of the sale, the chief executive officer now directly owns 2,299,148 shares in the company, valued at approximately $11,311,808.16. The trade was a 2.69 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider James Ming Hom sold 58,382 shares of the stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $18.35, for a total transaction of $1,071,309.70. Following the transaction, the insider now directly owns 754,811 shares in the company, valued at approximately $13,850,781.85. This represents a 7.18 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 2,321,786 shares of company stock valued at $35,065,286. Company insiders own 12.28% of the company's stock.

Institutional Trading of SoundHound AI

Institutional investors have recently made changes to their positions in the stock. Kings Path Partners LLC acquired a new position in SoundHound AI in the second quarter valued at $28,000. International Assets Investment Management LLC purchased a new position in shares of SoundHound AI in the 2nd quarter worth about $31,000. NBC Securities Inc. lifted its stake in shares of SoundHound AI by 97.8% in the 3rd quarter. NBC Securities Inc. now owns 7,720 shares of the company's stock valued at $35,000 after purchasing an additional 3,818 shares in the last quarter. Amalgamated Bank grew its holdings in shares of SoundHound AI by 108.0% during the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company's stock worth $39,000 after purchasing an additional 5,099 shares during the period. Finally, Signaturefd LLC increased its position in SoundHound AI by 27.3% during the 2nd quarter. Signaturefd LLC now owns 10,255 shares of the company's stock worth $41,000 after purchasing an additional 2,200 shares in the last quarter. 19.28% of the stock is owned by hedge funds and other 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.