SoundHound AI Shares Decline 1.7% Amid Insider Selling

On Friday, December 29th, shares of SoundHound AI, Inc. (NASDAQ:SOUN) decreased by 1.7% in the stock market, influenced by recent insider selling activities. The company's stock fell to a low of $22.74 before finishing the day at $23.81. During the trading session, a total of 34,210,179 shares changed hands, a notable drop of 17% compared to the average trading volume of 41,021,441 shares. This decline comes after the stock had previously closed at $24.23.

In particular, Vice President Majid Emami sold 37,459 shares of SoundHound AI on December 20th at an average price of $20.30, resulting in a total transaction value of $760,417.70. After this sale, Emami holds 698,226 shares, which are currently valued at approximately $14,173,987.80, indicating a decrease of 5.09% in his shareholding. The details of this transaction have been reported to the SEC.

Additionally, insider James Ming Hom sold 36,771 shares on the same day at the same average price of $20.30. The total sale amounted to $746,451.30, leaving him with 718,040 shares valued at around $14,576,212, representing a 4.87% reduction in his stake. Furthermore, COO Michael Zagorsek sold 60,796 shares during a similar transaction on December 20th, with a total value of $1,234,158.80 after selling at $20.30 per share. Following the sale, Zagorsek retains 1,412,526 shares worth approximately $28,674,277.80, a decrease of 4.13% in his holdings.

Analyst Opinions and Ratings

SoundHound AI has been the focus of various research analyst reports recently. Notably, HC Wainwright upgraded their target price for the stock from $8.00 to $26.00, assigning a “buy” rating. Similarly, Wedbush raised their price target from $10.00 to $22.00, marking the stock as “outperform.” Meanwhile, Barclays maintained a “neutral” rating with a price target of $7.00, and DA Davidson reiterated a “buy” rating with a target of $9.50. Overall, there are three analysts recommending a hold on the stock, while four have assigned a buy rating, resulting in a consensus average rating of “Moderate Buy” with a target price of $12.07 according to MarketBeat data.

Company Performance Overview

SoundHound AI holds a market capitalization of approximately $8.86 billion, with a PE ratio of -66.53 and a beta of 3.03, indicating that the stock is subject to higher volatility compared to the overall market. The company’s current ratio stands at 2.58, with the same quick ratio, and a debt-to-equity ratio of 0.13. The stock has shown significant upward movement, with a 50-day moving average of $10.66 and a 200-day moving average at $6.81.

SoundHound AI last reported its quarterly earnings on November 12th, revealing an earnings per share (EPS) of -$0.06, slightly surpassing analysts' expectations of -$0.07. This performance was an improvement over the prior year’s EPS of -$0.09. The company recorded revenues of $25.10 million, significantly exceeding the forecast of $23.02 million. Year-over-year, this represented an 88.7% increase in revenue. Analysts predict that SoundHound AI will post an EPS of -0.38 for this fiscal year.

Institutional Investor Trends

In recent months, several institutional investors have adjusted their holdings in SoundHound AI. Bank of New York Mellon Corp increased its stake by an impressive 92.7% in the second quarter, acquiring an additional 479,912 shares for a total of 997,543 shares valued at approximately $3,940,000. Harbour Investments grew its position by 5.1%, now owning 59,746 shares valued at $236,000 after purchasing 2,923 shares in the last quarter. Other firms such as Principal Financial Group and Signaturefd LLC also expanded their investments, showcasing broader institutional interest. Currently, 19.28% of SoundHound AI’s stock is held by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc. specializes in developing independent voice artificial intelligence technologies. Their solutions are designed to enhance customer interaction across various sectors, including automotive, Internet of Things (IoT), and customer service. Noteworthy products include the Houndify platform, which enables businesses to craft personalized voice assistants, along with SoundHound Chat AI, which delivers real-time data integration, and SoundHound Smart Answering, providing AI-driven voice assistance for businesses.

Conclusion

SoundHound AI’s recent share price drop due to insider selling raises concerns among investors, but analyst ratings and institutional interest may indicate potential long-term value. As the company continues to expand its market presence and capabilities in voice AI, it remains to be seen how these factors will influence investor sentiment in the near future.

Shares, Stock, Insider, Selling, Trading