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

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 9.5% during mid-day trading on Thursday following insider selling activity. The company 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 SoundHound AI 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 in the company, valued at approximately $13,850,781.85. The trade was a 7.18 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 277,813 shares of the company’s stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $21.25, for a total transaction of $5,903,526.25. Following the transaction, the chief operating officer now owns 1,473,322 shares in the company, valued at $31,308,092.50. This represents a 15.86 % decrease in their position. The disclosure for this sale can be found here. In related news, COO Michael Zagorsek sold 138,906 shares of the stock in a transaction on Monday, December 16th. The stock was 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 directly owns 1,473,322 shares in the company, valued at $25,974,666.86. This trade represents a 8.62 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Analyst Ratings Changes

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

SoundHound AI Stock Performance

The stock has a market cap of $6.97 billion, a PE ratio of -52.36 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 company’s 50-day moving average price is $8.67 and its two-hundred day moving average price is $6.09.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.07) by $0.01. The company had revenue of $25.10 million during the quarter, compared to analysts’ expectations 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 quarterly revenue was up 88.7% compared to the same quarter last year. During the same period in the prior year, the business posted ($0.09) EPS. On average, equities research analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently modified their holdings of SOUN. Kings Path Partners LLC bought a new position in shares of SoundHound AI during the second quarter valued at approximately $28,000. International Assets Investment Management LLC acquired a new position in shares of SoundHound AI in the 2nd quarter valued at $31,000. NBC Securities Inc. raised 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 purchasing an additional 3,818 shares during the last quarter. Amalgamated Bank boosted its stake in SoundHound AI by 108.0% during the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company’s stock worth $39,000 after purchasing an additional 5,099 shares during the period. Finally, Signaturefd LLC increased its stake in 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 purchasing an additional 2,200 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

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.