SoundHound AI (NASDAQ:SOUN) Shares Down 5.5% - Here's What Happened

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s share price was down 5.5% during trading on Thursday . The company traded as low as $7.96 and last traded at $8.35. Approximately 8,758,339 shares traded hands during trading, a decline of 77% from the average daily volume of 37,969,294 shares. The stock had previously closed at $8.83.

Wall Street Analysts Forecast Growth

Several equities analysts recently weighed in on SOUN shares. Northland Securities raised their target price on shares of SoundHound AI from $6.00 to $8.00 and gave the company a "market perform" rating in a research note on Tuesday, January 14th. Cantor Fitzgerald raised SoundHound AI to a "hold" rating in a report on Monday, February 24th. HC Wainwright reissued a "buy" rating and set a $26.00 target price on shares of SoundHound AI in a report on Monday, March 3rd. Wedbush boosted their price objective on shares of SoundHound AI from $10.00 to $22.00 and gave the company an "outperform" rating in a research report on Monday, December 16th. Finally, DA Davidson reduced their price objective on SoundHound AI from $13.00 to $10.00 and set a "buy" rating on the stock in a research report on Monday. Four investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $12.43.

SoundHound AI Stock Down 1.6 %

The company has a 50 day moving average of $10.14 and a 200-day moving average of $10.84. The company has a market capitalization of $3.25 billion, a P/E ratio of -22.64 and a beta of 2.73. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

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SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its 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 the consensus estimate of $33.70 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, insider James Ming Hom sold 28,388 shares of SoundHound AI stock in a transaction on Thursday, March 20th. The shares were sold at an average price of $9.90, for a total value of $281,041.20. Following the completion of the transaction, the insider now directly owns 689,652 shares of the company's stock, valued at $6,827,554.80. This trade represents a 3.95 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CTO Timothy Stonehocker sold 3,333 shares of the business's stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $10.08, for a total value of $33,596.64. Following the transaction, the chief technology officer now directly owns 765,534 shares in the company, valued at approximately $7,716,582.72. This represents a 0.43 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 500,565 shares of company stock valued at $4,999,726 over the last 90 days. Company insiders own 12.28% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Vanguard Group Inc. grew its holdings in shares of SoundHound AI by 35.6% in the fourth quarter. Vanguard Group Inc. now owns 32,031,662 shares of the company's stock worth $635,508,000 after purchasing an additional 8,402,881 shares during the last quarter. Geode Capital Management LLC increased its position in shares of SoundHound AI by 4.4% during the fourth quarter. Geode Capital Management LLC now owns 7,509,496 shares of the company's stock worth $149,024,000 after acquiring an additional 315,897 shares during the period. State Street Corp boosted its holdings in shares of SoundHound AI by 0.6% in the third quarter. State Street Corp now owns 7,197,414 shares of the company's stock valued at $33,540,000 after purchasing an additional 42,869 shares during the period. Northern Trust Corp grew its stake in SoundHound AI by 10.0% in the fourth quarter. Northern Trust Corp now owns 2,906,245 shares of the company's stock worth $57,660,000 after purchasing an additional 264,382 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in SoundHound AI by 5.6% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,725,693 shares of the company's stock worth $54,078,000 after purchasing an additional 143,487 shares during the period. Institutional investors own 19.28% of the company's stock.

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.