SoundHound AI (NASDAQ:SOUN) Trading Down 9.5% on Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 9.5% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $18.63 and last traded at $18.86. Approximately 76,289,294 shares traded hands during mid-day trading, an increase of 91% from the average daily volume of 39,892,145 shares. The stock had previously closed at $20.85.

Specifically, insider James Ming Hom sold 58,382 shares of the stock in a transaction that occurred on Monday, December 16th. The stock was sold at an average price of $18.35, for a total value of $1,071,309.70. Following the completion of the sale, the insider now directly owns 754,811 shares of the company’s stock, valued at $13,850,781.85. This represents a 7.18 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Michael Zagorsek sold 277,813 shares of the firm’s stock in a transaction on Wednesday, December 18th. The shares were sold at an average price of $21.25, for a total value of $5,903,526.25. Following the transaction, the chief operating officer now owns 1,473,322 shares in the company, valued at approximately $31,308,092.50. This trade represents a 15.86 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other SoundHound AI news, COO Michael Zagorsek sold 138,906 shares of the stock in a transaction dated Monday, December 16th. The shares were sold at an average price of $17.63, for a total value of $2,448,912.78. Following the completion of the sale, the chief operating officer now owns 1,473,322 shares in the company, valued at approximately $25,974,666.86. This trade represents a 8.62 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on the stock. LADENBURG THALM/SH SH reissued a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. DA Davidson reaffirmed a “buy” rating and set a $9.50 price objective on shares of SoundHound AI in a report on Monday, September 30th. Barclays reiterated a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research note on Wednesday, November 13th. HC Wainwright upped their price target on shares of SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. Finally, 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. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $9.50.

SoundHound AI Price Performance

The firm has a market capitalization of $6.90 billion, a P/E ratio of -51.86 and a beta of 3.03. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.58 and a current ratio of 2.58. The business has a 50 day simple moving average of $8.39 and a two-hundred day simple moving average of $6.00.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.01. The business had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. SoundHound AI’s revenue for the quarter was up 88.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.09) earnings per share. On average, sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. Carnegie Investment Counsel bought a new stake in shares of SoundHound AI in the 3rd quarter worth approximately $4,193,000. Geode Capital Management LLC raised its holdings in SoundHound AI by 9.1% in the 3rd quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company’s stock worth $33,529,000 after purchasing an additional 602,311 shares in the last quarter. Bank of New York Mellon Corp lifted its position in shares of SoundHound AI by 92.7% in the 2nd quarter. Bank of New York Mellon Corp now owns 997,543 shares of the company’s stock worth $3,940,000 after purchasing an additional 479,912 shares during the period. Shellback Capital LP bought a new stake in shares of SoundHound AI during the 2nd quarter valued at about $1,196,000. Finally, Squarepoint Ops LLC increased its position in shares of SoundHound AI by 818.0% during the second quarter. Squarepoint Ops LLC now owns 231,168 shares of the company’s stock valued at $913,000 after buying an additional 205,985 shares during the period. 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.