SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.5% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 5.5% during mid-day trading on Thursday . The company traded as low as $7.96 and last traded at $8.35. Approximately 8,758,339 shares changed 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.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Northland Securities raised 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. Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a research note on Monday, February 24th. HC Wainwright reissued a “buy” rating and issued a $26.00 price target on shares of SoundHound AI in a research note on Monday, March 3rd. Wedbush lifted their price objective on shares of SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a research note on Monday, December 16th. Finally, DA Davidson increased their target price on shares of SoundHound AI from $9.50 to $13.00 and gave the company a “buy” rating in a research report on Friday, February 28th. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, SoundHound AI presently has a consensus rating of “Hold” and a consensus target price of $12.86.

SoundHound AI Price Performance

The company has a 50 day moving average of $10.14 and a two-hundred day moving average of $10.80. The firm has a market cap of $3.30 billion, a P/E ratio of -23.00 and a beta of 2.73. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, February 27th. The company reported ($0.69) earnings per share for the quarter, missing the consensus estimate 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%. Sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In other news, insider James Ming Hom sold 51,196 shares of the company’s stock in a transaction on Monday, March 24th. The stock was sold at an average price of $10.25, for a total transaction of $524,759.00. Following the completion of the sale, the insider now directly owns 638,456 shares of the company’s stock, valued at $6,544,174. This represents a 7.42 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Keyvan Mohajer sold 118,605 shares of SoundHound AI stock in a transaction dated Thursday, March 20th. The stock was sold at an average price of $9.90, for a total value of $1,174,189.50. Following the completion of the transaction, the chief executive officer now directly owns 1,903,061 shares in the company, valued at $18,840,303.90. This represents a 5.87 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 500,565 shares of company stock worth $4,999,726. 12.28% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Blue Trust Inc. grew its holdings in shares of SoundHound AI by 197.6% during the fourth quarter. Blue Trust Inc. now owns 1,250 shares of the company’s stock valued at $25,000 after buying an additional 830 shares in the last quarter. Sound Income Strategies LLC increased its holdings in shares of SoundHound AI by 2,542.0% in the 4th quarter. Sound Income Strategies LLC now owns 1,321 shares of the company’s stock valued at $26,000 after purchasing an additional 1,271 shares during the period. Orion Capital Management LLC purchased a new stake in shares of SoundHound AI in the fourth quarter worth approximately $30,000. Future Financial Wealth Managment LLC acquired a new stake in shares of SoundHound AI during the fourth quarter worth approximately $40,000. Finally, Compagnie Lombard Odier SCmA purchased a new position in SoundHound AI during the fourth quarter valued at approximately $40,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

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.