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

SoundHound AI, Inc. (NASDAQ:SOUN) shares gapped down before the market opened on Monday . The stock had previously closed at $14.15, but opened at $13.07. SoundHound AI shares last traded at $13.86, with a volume of 9,408,747 shares.

Analysts Set New Price Targets

SOUN has been the topic of a number of recent research reports. LADENBURG THALM/SH SH reiterated a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. Barclays reiterated a “neutral” rating and set a $7.00 price target on shares of SoundHound AI in a research note on Wednesday, November 13th. HC Wainwright reiterated a “buy” rating and set a $26.00 price target on shares of SoundHound AI in a research note on Monday, January 13th. Northland Securities lifted their price target on shares of SoundHound AI from $6.00 to $8.00 and gave the stock a “market perform” rating in a research note on Tuesday, January 14th. Finally, Wedbush lifted their price target on shares of SoundHound AI from $10.00 to $22.00 and gave the stock an “outperform” rating in a research note on Monday, December 16th. Three analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and an average target price of $12.36.

SoundHound AI Price Performance

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 $15.63 and its 200 day moving average price is $8.87. The company has a market cap of $5.32 billion, a price-to-earnings ratio of -40.10 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Tuesday, November 12th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.01. The business had revenue of $25.10 million for the quarter, compared to the consensus estimate of $23.02 million. SoundHound AI had a negative net margin of 163.58% and a negative return on equity of 55.58%. The firm’s quarterly revenue was up 88.7% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.09) EPS. On average, equities research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, VP Majid Emami sold 94,067 shares of the firm’s stock in a transaction dated Monday, December 2nd. The shares were sold at an average price of $9.05, for a total value of $851,306.35. Following the transaction, the vice president now owns 735,685 shares of the company’s stock, valued at approximately $6,657,949.25. This trade represents a 11.34 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Lawrence Marcus sold 30,000 shares of SoundHound AI stock in a transaction that occurred on Thursday, November 21st. The stock was sold at an average price of $7.15, for a total transaction of $214,500.00. Following the sale, the director now owns 178,117 shares of the company’s stock, valued at approximately $1,273,536.55. This represents a 14.41 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 2,782,918 shares of company stock worth $45,391,343 in the last 90 days. Corporate insiders own 12.28% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SOUN. Sei Investments Co. bought a new stake in shares of SoundHound AI in the 2nd quarter valued at about $43,000. Squarepoint Ops LLC raised its holdings in SoundHound AI by 818.0% in the second quarter. Squarepoint Ops LLC now owns 231,168 shares of the company’s stock worth $913,000 after purchasing an additional 205,985 shares during the period. AQR Capital Management LLC boosted its position in shares of SoundHound AI by 40.2% during the second quarter. AQR Capital Management LLC now owns 29,417 shares of the company’s stock worth $116,000 after purchasing an additional 8,440 shares in the last quarter. The Manufacturers Life Insurance Company grew its holdings in shares of SoundHound AI by 101.7% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 106,076 shares of the company’s stock valued at $419,000 after buying an additional 53,490 shares during the period. Finally, Algert Global LLC bought a new stake in shares of SoundHound AI in the 2nd quarter valued at $103,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.