SoundHound AI (NASDAQ:SOUN) Shares Down 9.5% Following Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 9.5% 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 firm’s stock in a transaction dated Monday, December 16th. The stock was sold at an average price of $18.35, for a total transaction of $1,071,309.70. Following the sale, the insider now owns 754,811 shares of the company’s stock, valued at $13,850,781.85. This trade represents a 7.18 % decrease in their ownership of the stock. The transaction 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 stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $21.25, for a total value of $5,903,526.25. Following the sale, the chief operating officer now directly owns 1,473,322 shares of the company’s stock, valued at approximately $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. In other SoundHound AI news, COO Michael Zagorsek sold 138,906 shares of SoundHound AI stock in a transaction that occurred on 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 transaction, the chief operating officer now owns 1,473,322 shares of the company’s stock, valued at approximately $25,974,666.86. The trade was a 8.62 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website.

Analysts Set New Price Targets

A number of brokerages recently issued reports on SOUN. Barclays reissued a “neutral” rating and issued a $7.00 target price on shares of SoundHound AI in a research report on Wednesday, November 13th. Wedbush increased their target price on shares of SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a report on Monday. HC Wainwright raised their price target on SoundHound AI from $7.00 to $8.00 and gave the company a “buy” rating in a research note on Thursday, November 14th. DA Davidson reiterated a “buy” rating and issued a $9.50 price target on shares of SoundHound AI in a research note on Monday, September 30th. Finally, LADENBURG THALM/SH SH restated a “neutral” rating and set a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $9.50.

SoundHound AI Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.58 and a quick ratio of 2.58. The stock’s 50-day moving average price is $8.39 and its 200-day moving average price is $6.00. The company has a market cap of $6.90 billion, a P/E ratio of -51.86 and a beta of 3.03.

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

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the business. Carnegie Investment Counsel bought a new position in shares of SoundHound AI in the 3rd quarter valued at $4,193,000. Geode Capital Management LLC grew its holdings in SoundHound AI by 9.1% during the 3rd quarter. Geode Capital Management LLC now owns 7,193,599 shares of the company’s stock worth $33,529,000 after acquiring an additional 602,311 shares during the last quarter. Bank of New York Mellon Corp increased its position in 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 valued at $3,940,000 after acquiring an additional 479,912 shares during the period. Shellback Capital LP acquired a new position in shares of SoundHound AI during the second quarter worth $1,196,000. Finally, Squarepoint Ops LLC lifted its stake in shares of SoundHound AI by 818.0% in the second quarter. Squarepoint Ops LLC now owns 231,168 shares of the company’s stock worth $913,000 after acquiring 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.