SoundHound AI (NASDAQ:SOUN) Shares Down 7.1% - Here's Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were down 7.1% on Tuesday . The company traded as low as $12.71 and last traded at $13.07. Approximately 25,338,579 shares changed hands during mid-day trading, a decline of 61% from the average daily volume of 64,823,898 shares. The stock had previously closed at $14.07.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Northland Securities upped their price target 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. Barclays restated a "neutral" rating and set a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Wedbush lifted their price target on SoundHound AI from $10.00 to $22.00 and gave the stock an "outperform" rating in a research report on Monday, December 16th. HC Wainwright reissued a "buy" rating and set a $26.00 price objective on shares of SoundHound AI in a research note on Monday, January 13th. Finally, LADENBURG THALM/SH SH reaffirmed a "neutral" rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Three research 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 an average rating of "Moderate Buy" and a consensus target price of $12.36.

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SoundHound AI Stock Up 1.1 %

The firm has a market cap of $5.23 billion, a PE ratio of -39.31 and a beta of 2.63. The company has a 50-day simple moving average of $15.63 and a 200-day simple moving average of $8.87. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58.

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 (EPS) for the quarter, beating 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 quarter in the previous year, the business earned ($0.09) EPS. SoundHound AI's revenue was up 88.7% compared to the same quarter last year. Analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, VP Majid Emami sold 94,067 shares of the firm's stock in a transaction on Monday, December 2nd. The stock was sold at an average price of $9.05, for a total transaction of $851,306.35. Following the transaction, the vice president now owns 735,685 shares in the company, valued at approximately $6,657,949.25. This trade represents a 11.34 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Lawrence Marcus sold 20,000 shares of the company's stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $20.47, for a total transaction of $409,400.00. Following the completion of the sale, the director now directly owns 108,117 shares of the company's stock, valued at approximately $2,213,154.99. This trade represents a 15.61 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 2,782,918 shares of company stock worth $45,391,343 in the last 90 days. 12.28% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently modified their holdings of the business. Commons Capital LLC boosted its position in SoundHound AI by 2.7% during the 4th quarter. Commons Capital LLC now owns 27,349 shares of the company's stock valued at $543,000 after acquiring an additional 723 shares in the last quarter. ST Germain D J Co. Inc. boosted its position in SoundHound AI by 33.2% during the fourth quarter. ST Germain D J Co. Inc. now owns 3,008 shares of the company's stock valued at $60,000 after purchasing an additional 750 shares in the last quarter. Blue Trust Inc. raised its holdings in SoundHound AI by 197.6% in the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company's stock worth $25,000 after purchasing an additional 830 shares in the last quarter. Choreo LLC boosted its holdings in shares of SoundHound AI by 7.6% in the 4th quarter. Choreo LLC now owns 14,424 shares of the company's stock valued at $309,000 after buying an additional 1,015 shares in the last quarter. Finally, Genesee Capital Advisors LLC grew its position in shares of SoundHound AI by 6.5% in the 4th quarter. Genesee Capital Advisors LLC now owns 17,168 shares of the company's stock worth $341,000 after buying an additional 1,050 shares during the last quarter. 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.