SoundHound AI (NASDAQ:SOUN) Shares Down 4.8% – Here’s Why
by Amy Steele · The Cerbat GemSoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report)’s stock price dropped 4.8% during trading on Monday . The stock traded as low as $8.36 and last traded at $8.45. Approximately 34,769,135 shares traded hands during mid-day trading, an increase of 24% from the average daily volume of 27,965,973 shares. The stock had previously closed at $8.88.
Key Headlines Impacting SoundHound AI
Here are the key news stories impacting SoundHound AI this week:
- Positive Sentiment: The company continues to post rapid growth, with first-quarter revenue up 52% year over year, and investors are still watching AI-related deals and products such as OASYS and the LivePerson partnership for upside potential. Is SoundHound Stock Still a Strong AI Play After the Q1 Selloff?
- Positive Sentiment: Some market commentary remains bullish, highlighting that SoundHound has now delivered six straight earnings beats and projecting significant upside from current levels. We’re Bullish on SoundHound With Six Straight Earnings Beats
- Neutral Sentiment: The stock has been highly volatile, with a strong one-month rebound after a sharp selloff, suggesting traders are still debating whether the recent pullback is a buying opportunity or a warning sign. Is SoundHound Stock Still a Strong AI Play After the Q1 Selloff?
- Negative Sentiment: Investors are still focused on margin pressure and valuation, and a wider-than-expected quarterly loss is weighing on sentiment despite the revenue growth. Why SoundHound AI (SOUN) Shares Are Getting Obliterated Today
- Negative Sentiment: Fresh coverage also points to an unchanged risk profile and continued pressure on the stock’s performance and valuation, reinforcing the cautious tone around the name. Unchanged Risk Profile Keeps Pressure on SoundHound AI Class A’s Performance and Valuation
Wall Street Analyst Weigh In
SOUN has been the subject of several research reports. Piper Sandler reissued a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. HC Wainwright dropped their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $14.93.
View Our Latest Analysis on SOUN
SoundHound AI Price Performance
The company’s 50-day moving average price is $7.55 and its two-hundred day moving average price is $9.90. The company has a market capitalization of $3.56 billion, a price-to-earnings ratio of -17.91 and a beta of 2.58.
SoundHound AI (NASDAQ:SOUN – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 41.46% and a negative net margin of 91.84%.The company’s quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter last year, the company earned ($0.06) earnings per share. On average, equities research analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.
Insiders Place Their Bets
In other SoundHound AI news, CFO Nitesh Sharan sold 44,027 shares of the firm’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider James Ming Hom sold 31,019 shares of the firm’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the insider owned 772,364 shares of the company’s stock, valued at $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On SoundHound AI
A number of large investors have recently bought and sold shares of SOUN. Vanguard Group Inc. grew its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC grew its holdings in shares of SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after buying an additional 273,097 shares during the last quarter. Morgan Stanley grew its holdings in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after buying an additional 2,917,280 shares during the last quarter. State Street Corp grew its holdings in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after buying an additional 80,908 shares during the last quarter. Finally, UBS Group AG grew its holdings in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after buying an additional 2,676,707 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.
SoundHound AI Company Profile
SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.
The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.