SoundHound AI (NASDAQ:SOUN) Shares Down 7.1% on Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 7.1% on Wednesday after an insider sold shares in the company. The stock traded as low as $13.16 and last traded at $13.22. Approximately 12,344,222 shares were traded during trading, a decline of 67% from the average daily volume of 37,624,895 shares. The stock had previously closed at $14.23.

Specifically, CEO Keyvan Mohajer sold 368,041 shares of the company’s stock in a transaction that occurred on Friday, December 6th. The stock was sold at an average price of $15.00, for a total value of $5,520,615.00. Following the sale, the chief executive officer now owns 2,299,148 shares in the company, valued at $34,487,220. This represents a 13.80 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keyvan Mohajer sold 465,394 shares of the company’s stock in a transaction on Monday, December 9th. The shares were sold at an average price of $15.04, for a total transaction of $6,999,525.76. Following the completion of the sale, the chief executive officer now directly owns 2,299,148 shares in the company, valued at $34,579,185.92. This trade represents a 16.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, VP Majid Emami sold 368,662 shares of the company’s stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $15.00, for a total value of $5,529,930.00. Following the sale, the vice president now owns 735,685 shares in the company, valued at $11,035,275. This represents a 33.38 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on the company. HC Wainwright boosted their price target on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a report on Thursday, November 14th. DA Davidson reissued a “buy” rating and set a $9.50 price target on shares of SoundHound AI in a report on Monday, September 30th. Barclays reaffirmed a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a report on Wednesday, November 13th. LADENBURG THALM/SH SH reissued a “neutral” rating and set a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. Finally, Wedbush restated an “outperform” rating and issued a $9.00 price target on shares of SoundHound AI in a research note on Thursday, September 26th. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average price target of $7.64.

SoundHound AI Price Performance

The company has a market cap of $4.95 billion, a PE ratio of -36.72 and a beta of 3.03. The company has a quick ratio of 2.58, a current ratio of 2.58 and a debt-to-equity ratio of 0.13. The stock has a 50-day simple moving average of $6.88 and a 200 day simple moving average of $5.48.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Tuesday, November 12th. The company reported ($0.06) EPS for the quarter, beating analysts’ consensus estimates of ($0.07) by $0.01. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The company had revenue of $25.10 million for the quarter, compared to analysts’ expectations of $23.02 million. During the same quarter in the prior year, the company posted ($0.09) earnings per share. SoundHound AI’s revenue for the quarter was up 88.7% compared to the same quarter last year. Equities analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Institutional Trading of SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SOUN. Kings Path Partners LLC acquired a new position in SoundHound AI during the 2nd quarter worth about $28,000. International Assets Investment Management LLC purchased a new stake in SoundHound AI during the 2nd quarter worth approximately $31,000. NBC Securities Inc. boosted its position in 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 buying an additional 3,818 shares during the period. Amalgamated Bank grew its stake in shares of SoundHound AI by 108.0% in the second quarter. Amalgamated Bank now owns 9,819 shares of the company’s stock worth $39,000 after acquiring an additional 5,099 shares in the last quarter. Finally, Signaturefd LLC raised its stake in shares of SoundHound AI by 27.3% in the second quarter. Signaturefd LLC now owns 10,255 shares of the company’s stock valued at $41,000 after acquiring an additional 2,200 shares in the last quarter. Hedge funds and other 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.