SoundHound AI (NASDAQ:SOUN) Shares Down 2.7% – Time to Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 2.7% during trading on Monday . The stock traded as low as $5.97 and last traded at $6.19. Approximately 11,162,979 shares traded hands during mid-day trading, a decline of 68% from the average daily volume of 34,481,277 shares. The stock had previously closed at $6.36.

Analysts Set New Price Targets

Several equities analysts recently commented on SOUN shares. LADENBURG THALM/SH SH reissued a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Barclays restated a “neutral” rating and issued a $7.00 price target on shares of SoundHound AI in a report on Wednesday, November 13th. Northland Securities raised their price objective on shares of SoundHound AI from $5.50 to $6.00 and gave the company a “market perform” rating in a research note on Friday, August 9th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the company from $5.00 to $7.00 in a research report on Friday, August 9th. Finally, Wedbush reissued an “outperform” rating and issued a $9.00 price target on shares of SoundHound AI in a report on Thursday, September 26th. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. Based on data from 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 current ratio of 2.58, a quick ratio of 8.77 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $2.28 billion, a P/E ratio of -17.19 and a beta of 2.71. The company has a 50 day simple moving average of $5.30 and a two-hundred day simple moving average of $4.96.

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, beating analysts’ consensus estimates of ($0.07) by $0.01. The firm had revenue of $25.10 million during the quarter, compared to analyst estimates of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The business’s revenue was up 88.7% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.09) earnings per share. On average, equities analysts predict that SoundHound AI, Inc. will post -0.37 EPS for the current fiscal year.

Insider Buying and Selling

In other news, CEO Keyvan Mohajer sold 90,641 shares of the stock in a transaction dated Friday, September 20th. The shares were sold at an average price of $4.88, for a total value of $442,328.08. Following the completion of the sale, the chief executive officer now directly owns 2,362,692 shares in the company, valued at $11,529,936.96. This represents a 3.69 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Lawrence Marcus sold 50,000 shares of SoundHound AI stock in a transaction on Tuesday, August 20th. The stock was sold at an average price of $5.02, for a total value of $251,000.00. Following the transaction, the director now owns 74,038 shares in the company, valued at approximately $371,670.76. This represents a 40.31 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 327,275 shares of company stock worth $1,606,644. 12.28% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the company. Kings Path Partners LLC acquired a new position in SoundHound AI in the second quarter valued at $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. lifted its holdings in shares of SoundHound AI by 97.8% during the 3rd quarter. NBC Securities Inc. now owns 7,720 shares of the company’s stock valued at $35,000 after acquiring an additional 3,818 shares in the last quarter. Amalgamated Bank lifted its holdings in SoundHound AI by 108.0% in the 2nd quarter. Amalgamated Bank now owns 9,819 shares of the company’s stock worth $39,000 after buying an additional 5,099 shares in the last quarter. Finally, Signaturefd LLC grew its stake in SoundHound AI by 27.3% in the second quarter. Signaturefd LLC now owns 10,255 shares of the company’s stock worth $41,000 after purchasing an additional 2,200 shares in the last quarter. 19.28% of the stock is currently 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.