SoundHound AI (NASDAQ:SOUN) Trading Down 5.4% After Insider Selling

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 5.4% during trading on Thursday following insider selling activity. The company traded as low as $10.90 and last traded at $11.13. Approximately 12,678,415 shares were traded during mid-day trading, a decline of 66% from the average daily volume of 37,716,051 shares. The stock had previously closed at $11.76.

Specifically, insider James Ming Hom sold 3,815 shares of the business’s stock in a transaction on Monday, May 12th. The stock was sold at an average price of $10.00, for a total transaction of $38,150.00. Following the completion of the transaction, the insider now owns 637,090 shares in the company, valued at $6,370,900. The trade was a 0.60% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CTO Timothy Stonehocker sold 44,157 shares of the business’s stock in a transaction on Wednesday, May 14th. The shares were sold at an average price of $12.00, for a total value of $529,884.00. Following the transaction, the chief technology officer now owns 723,009 shares of the company’s stock, valued at approximately $8,676,108. The trade was a 5.76% decrease in their position. The disclosure for this sale can be found here.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on SOUN shares. DA Davidson dropped their price objective on SoundHound AI from $13.00 to $10.00 and set a “buy” rating for the company in a report on Monday, April 14th. HC Wainwright reduced their price target on SoundHound AI from $26.00 to $18.00 and set a “buy” rating for the company in a research report on Monday. Wedbush reduced their price target on SoundHound AI from $22.00 to $15.00 and set an “outperform” rating for the company in a research report on Friday, May 9th. Finally, Cantor Fitzgerald raised SoundHound AI to a “hold” rating in a research report on Monday, February 24th. Four analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $10.29.

SoundHound AI Stock Down 6.4%

The company has a 50-day moving average of $9.03 and a 200-day moving average of $11.45. The company has a market capitalization of $4.39 billion, a price-to-earnings ratio of -30.58 and a beta of 2.71. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, May 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.03. The company had revenue of $29.13 million for the quarter, compared to analyst estimates of $30.38 million. SoundHound AI had a negative return on equity of 55.58% and a negative net margin of 163.58%. The firm’s quarterly revenue was up 151.2% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.07) EPS. On average, equities analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. EP Wealth Advisors LLC increased its holdings in shares of SoundHound AI by 25.1% in the first quarter. EP Wealth Advisors LLC now owns 13,394 shares of the company’s stock valued at $109,000 after purchasing an additional 2,689 shares during the period. First Manhattan CO. LLC. purchased a new stake in shares of SoundHound AI in the first quarter worth about $985,000. Cubist Systematic Strategies LLC purchased a new stake in shares of SoundHound AI in the first quarter worth about $6,755,000. Royal Bank of Canada boosted its stake in shares of SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after buying an additional 66,714 shares during the last quarter. Finally, MAI Capital Management boosted its stake in shares of SoundHound AI by 33.0% in the first quarter. MAI Capital Management now owns 16,634 shares of the company’s stock worth $135,000 after buying an additional 4,123 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

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.