SoundHound AI (NASDAQ:SOUN) Shares Gap Down – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $15.25, but opened at $11.14. SoundHound AI shares last traded at $11.51, with a volume of 80,125,043 shares.

Wall Street Analysts Forecast Growth

SOUN has been the subject of a number of recent research reports. LADENBURG THALM/SH SH restated a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a report on Wednesday, November 13th. HC Wainwright reissued a “buy” rating and issued a $26.00 price target on shares of SoundHound AI in a research note on Monday, January 13th. Barclays reaffirmed a “neutral” rating and issued a $7.00 price objective on shares of SoundHound AI in a research note on Wednesday, November 13th. Wedbush increased their target price on shares of SoundHound AI from $10.00 to $22.00 and gave the company an “outperform” rating in a research report on Monday, December 16th. Finally, Northland Securities boosted 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 report on Tuesday, January 14th. Three equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $12.36.

SoundHound AI Stock Down 28.1 %

The company has a market cap of $4.31 billion, a price-to-earnings ratio of -30.47 and a beta of 2.56. The stock’s 50-day moving average is $16.62 and its 200-day moving average is $9.53. The company has a current ratio of 2.58, a quick ratio of 2.58 and a debt-to-equity ratio of 0.13.

Insider Transactions at SoundHound AI

In other news, VP Majid Emami sold 94,067 shares of the company’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $9.05, for a total transaction of $851,306.35. Following the transaction, the vice president now directly owns 735,685 shares of the company’s stock, valued at $6,657,949.25. This represents a 11.34 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Timothy Stonehocker sold 34,407 shares of SoundHound AI stock in a transaction on Friday, December 20th. The shares were sold at an average price of $20.30, for a total transaction of $698,462.10. Following the completion of the sale, the chief technology officer now directly owns 796,581 shares of the company’s stock, valued at approximately $16,170,594.30. The trade was a 4.14 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 2,782,918 shares of company stock valued at $45,391,343 in the last 90 days. 12.28% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the business. Mercer Global Advisors Inc. ADV raised its stake in shares of SoundHound AI by 101.3% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 20,710 shares of the company’s stock worth $411,000 after purchasing an additional 10,424 shares during the last quarter. GG Group Ventures LLC grew its holdings in SoundHound AI by 146.4% during the fourth quarter. GG Group Ventures LLC now owns 53,762 shares of the company’s stock worth $1,067,000 after buying an additional 31,946 shares in the last quarter. Northern Trust Corp raised its position in SoundHound AI by 10.0% in the 4th quarter. Northern Trust Corp now owns 2,906,245 shares of the company’s stock valued at $57,660,000 after buying an additional 264,382 shares during the last quarter. The Manufacturers Life Insurance Company lifted its stake in SoundHound AI by 16.1% during the 4th quarter. The Manufacturers Life Insurance Company now owns 176,301 shares of the company’s stock valued at $3,498,000 after acquiring an additional 24,475 shares in the last quarter. Finally, Science & Technology Partners L.P. purchased a new position in SoundHound AI during the 4th quarter worth $15,500,000. Institutional investors 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.