SoundHound AI (NASDAQ:SOUN) Shares Down 0.5% - What's Next?

On Tuesday, shares of SoundHound AI, Inc. (NASDAQ:SOUN) experienced a dip of 0.5% during mid-day trading. At one point, the stock fell to $7.80 before recovering slightly to close at $8.08. The trading volume for this session was 5,916,344 shares, which represents a significant decline of 87% compared to the average session volume of 46,193,543 shares. The previous close for the stock was $8.12.

Wall Street Analysts Forecast Growth

Several research analysts have provided insights about SoundHound AI's shares. For instance, DA Davidson raised their price target for the stock from $9.50 to $13.00 and assigned a "buy" rating in a report dated February 28. Similarly, Cantor Fitzgerald upgraded their rating to "hold" on February 24. Wedbush analysts increased their target price from $10.00 to $22.00 while also giving the company an "outperform" rating in a note released on December 16. On March 3, HC Wainwright reaffirmed a "buy" rating and set a target price of $26.00 for SoundHound AI shares. Northland Securities also adjusted their target from $6.00 to $8.00 and rated the stock as "market perform" on January 14. Currently, the consensus rating from analysts stands at "Hold" with an average price target of $12.86.

SoundHound AI Stock Down 0.3 %

SoundHound AI has a market capitalization of $3.23 billion, a price-to-earnings ratio of -22.45, and a beta of 2.62. The company maintains a debt-to-equity ratio of 0.13, alongside current and quick ratios, both standing at 2.58. The stock's 50-day moving average is $11.68, and the 200-day moving average is $10.64.

Quarterly Earnings Report

SoundHound AI released its quarterly earnings data on February 27, reporting a loss of ($0.69) per share, which fell short of analysts' expectations by ($0.58). The company reported a negative net margin of 163.58% and a negative return on equity of 55.58%. Revenue for the quarter was $34.54 million, slightly surpassing the analyst consensus estimate of $33.70 million. Analysts project that SoundHound AI will record earnings of -$0.38 per share for the current fiscal year.

Insider Trading Activity

In recent insider trading news, James Ming Hom sold 51,196 shares of SoundHound AI on March 24 at an average price of $10.25, totaling approximately $524,759. Following the sale, Hom retains 638,456 shares valued around $6,544,174, reflecting a decrease of 7.42% in their stake. Director Diana Sroka also participated in selling 3,402 shares on the same day at an average price of $10.08, resulting in a total of $34,292.16. After this transaction, Sroka owns 138,850 shares valued at $1,399,608, representing a 2.39% decrease in their holdings. In the last 90 days, insiders have sold 500,565 shares valued at around $4,999,726, with corporate insiders owning 12.28% of the stock.

Institutional Ownership Changes

Several large investors have recently adjusted their holdings in SoundHound AI. Wellington Management Group LLP acquired a new stake in the company worth approximately $7,789,000 in the fourth quarter. California State Teachers Retirement System increased its holdings by 13.6%, owning 303,598 shares valued at $6,023,000 after an additional purchase of 36,422 shares. Objective Capital Management LLC raised their stake by 25.0%, now possessing 25,000 shares worth $496,000. Additionally, Wealth Enhancement Advisory Services LLC expanded its holdings by 171.0%, now holding 69,831 shares valued at $1,385,000. B. Riley Wealth Advisors Inc. also bought a new position valued at around $544,000 during the fourth quarter. Institutional ownership stands at 19.28% of the company's total stock.

About SoundHound AI, Inc.

SoundHound AI, Inc. specializes in developing independent voice AI solutions catering to various industries, including automotive, television, Internet of Things (IoT), and customer service. Their products feature the Houndify platform, which provides a range of tools for creating conversational voice assistants, including an API for voice and text queries, customized commands, a vast content library, and analytics capabilities. Other offerings include SoundHound Chat AI, which integrates real-time data from various domains, and SoundHound Smart Answering, designed to empower businesses with AI-driven voice assistance.

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