Key Points
- CEO Keyvan Mohajer sold 126,540 SoundHound AI shares on June 15 at an average price of $7.46, worth about $944,000. The company said the sale was to cover tax withholding obligations tied to vested equity awards.
- Several other SoundHound insiders also sold shares on the same date, which may weigh on sentiment even though the sales were described as tax-related rather than open-market selling.
- SoundHound’s latest quarter showed revenue growth of 51.7% year over year to $44.2 million, but earnings came in slightly below expectations at a loss of $0.06 per share. Analysts remain mixed, with the stock carrying a Moderate Buy consensus and an average target price of $14.93.
SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) CTO Timothy Stonehocker sold 18,802 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the sale, the chief technology officer directly owned 502,290 shares of the company's stock, valued at $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.
Timothy Stonehocker also recently made the following trade(s):
- On Friday, March 20th, Timothy Stonehocker sold 23,087 shares of SoundHound AI stock. The shares were sold at an average price of $6.79, for a total value of $156,760.73.
SoundHound AI Trading Down 1.0%
SOUN stock opened at $6.96 on Thursday. The company has a market capitalization of $3.01 billion, a PE ratio of -14.81 and a beta of 2.56. SoundHound AI, Inc. has a 12-month low of $5.83 and a 12-month high of $22.17. The business's fifty day moving average price is $7.94 and its 200 day moving average price is $8.81.
SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results 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). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. During the same period in the previous year, the company earned ($0.06) earnings per share. SoundHound AI's quarterly revenue was up 51.7% on a year-over-year basis. Research analysts predict that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.
Key SoundHound AI News
Here are the key news stories impacting SoundHound AI this week:
- Neutral Sentiment: Several SoundHound executives and insiders sold shares on June 15, including CEO Keyvan Mohajer, COO Michael Zagorsek, CTO Timothy Stonehocker, SVP Majid Emami, and insider James Ming Hom. The company said the sales were made to cover tax withholding obligations tied to vesting equity awards, which makes the transactions less concerning than open-market selling, but the size and number of sales can still weigh on sentiment.
- Neutral Sentiment: Analysts and commentary pieces continue to highlight SoundHound’s strong growth story in conversational AI and the potential for enterprise adoption, with one bullish note pointing to a possible $500 million revenue target as a reason to view the stock as attractive.
- Neutral Sentiment: Other recent coverage has been more cautious, emphasizing that SOUN trades at a premium to the industry and may not be a clear bargain despite its growth prospects. That valuation debate is likely contributing to volatility.
- Negative Sentiment: Additional market coverage noted that SoundHound AI shares have been falling alongside other names in the sector, suggesting broader weakness in high-growth AI stocks is also pressuring the shares.
Wall Street Analyst Weigh In
Several equities analysts have commented on SOUN shares. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Piper Sandler reiterated a "neutral" rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday. HC Wainwright dropped their target price on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Finally, DA Davidson reaffirmed a "buy" rating and issued a $14.00 target price on shares of SoundHound AI in a research report on Wednesday, April 22nd. One equities research 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 stock. According to data from MarketBeat.com, SoundHound AI presently has a consensus rating of "Moderate Buy" and an average target price of $14.93.
Get Our Latest Stock Analysis on SoundHound AI
Institutional Inflows and Outflows
Hedge funds have recently added to or reduced their stakes in the company. Hollencrest Capital Management grew its stake in SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock worth $25,000 after buying an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in shares of SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock worth $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC grew its position in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after acquiring an additional 1,544 shares during the last quarter. Danske Bank A S purchased a new position in shares of SoundHound AI during the third quarter worth approximately $26,000. Finally, SHP Wealth Management purchased a new position in shares of SoundHound AI during the fourth quarter worth approximately $27,000. Hedge funds and other institutional investors own 19.28% of the company's stock.
About SoundHound AI
(
Get Free Report)
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.
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