SoundHound AI (NASDAQ:SOUN) Trading Down 2.4% - Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price dropped 2.4% during trading on Wednesday . The stock traded as low as $15.82 and last traded at $16.13. Approximately 32,074,810 shares changed hands during mid-day trading, a decline of 53% from the average daily volume of 67,568,859 shares. The stock had previously closed at $16.52.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on SOUN. LADENBURG THALM/SH SH reaffirmed a "neutral" rating and set a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. Northland Securities upped their price target on SoundHound AI from $6.00 to $8.00 and gave the company a "market perform" rating in a report on Tuesday, January 14th. HC Wainwright reissued a "buy" rating and set a $26.00 price objective on shares of SoundHound AI in a report on Monday, January 13th. Barclays restated a "neutral" rating and issued a $7.00 target price on shares of SoundHound AI in a report on Wednesday, November 13th. Finally, DA Davidson reiterated 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 issued a buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $12.36.

SoundHound AI Stock Performance

The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13. The stock has a market cap of $5.96 billion, a price-to-earnings ratio of -44.82 and a beta of 2.63. The stock's 50 day moving average is $14.32 and its two-hundred day moving average is $8.33.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings data on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, topping analysts' consensus estimates 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 company 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 earned ($0.09) EPS. The firm's revenue for the quarter was up 88.7% on a year-over-year basis. Analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, Director Lawrence Marcus sold 20,000 shares of the firm's stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $20.47, for a total value of $409,400.00. Following the completion of the sale, the director now owns 108,117 shares in the company, valued at $2,213,154.99. This trade represents a 15.61 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, COO Michael Zagorsek sold 277,813 shares of the company's stock in a transaction dated Wednesday, December 18th. The stock was sold at an average price of $21.25, for a total transaction of $5,903,526.25. Following the transaction, the chief operating officer now owns 1,473,322 shares in the company, valued at $31,308,092.50. The trade was a 15.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 2,782,918 shares of company stock worth $45,391,343 over the last 90 days. Company insiders own 12.28% of the company's stock.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Victory Capital Management Inc. boosted its position in shares of SoundHound AI by 9.0% in the 2nd quarter. Victory Capital Management Inc. now owns 36,511 shares of the company's stock worth $144,000 after buying an additional 3,017 shares in the last quarter. Amalgamated Bank lifted its holdings in shares of SoundHound AI by 108.0% in the second quarter. Amalgamated Bank now owns 9,819 shares of the company's stock valued at $39,000 after purchasing an additional 5,099 shares in the last quarter. Hsbc Holdings PLC grew its position in shares of SoundHound AI by 928.9% in the second quarter. Hsbc Holdings PLC now owns 155,975 shares of the company's stock valued at $613,000 after purchasing an additional 140,815 shares during the last quarter. Sei Investments Co. purchased a new position in shares of SoundHound AI during the 2nd quarter worth approximately $43,000. Finally, Xponance Inc. acquired a new position in shares of SoundHound AI during the 2nd quarter worth approximately $71,000. Institutional investors and hedge funds 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.

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