Insider Selling: SoundHound AI, Inc. (NASDAQ:SOUN) VP Sells 298,086 Shares of Stock

On December 9th, just recently, Majid Emami, the vice president of SoundHound AI, Inc. (NASDAQ:SOUN), made a notable move by selling 298,086 shares of the company's stock. The shares were sold at an average price of $15.04 each, bringing the total value of the transaction to a significant $4,483,213.44. After completing this sale, Emami now holds 735,685 shares in SoundHound AI, which is valued at approximately $11,064,702.40. This transaction indicates a 28.83% reduction in his ownership position. The sale was duly reported in a filing with the SEC, highlighting transparency in corporate governance.

In addition to this recent sale, Majid Emami has made other transactions involving SoundHound AI shares. On December 6th, he sold 368,662 shares at an average price of $15.00, totaling $5,529,930.00. Earlier, on December 2nd, he sold 94,067 shares at an average price of $9.05, amounting to $851,306.35. These actions by Emami might give investors and market observers reasons to analyze his intentions regarding the company's future.

SoundHound AI Stock Overview

As of midday trading on a Tuesday, SoundHound AI's stock price dropped by $0.83, settling at $14.23. During this trading session, the stock exhibited a trading volume of 88,813,180 shares, which significantly exceeded its average volume of 37,752,652 shares. SoundHound AI currently holds a market capitalization of $5.26 billion and presents a price-to-earnings ratio of -39.53. With a beta of 3.03, the stock demonstrates a greater volatility compared to the market. The company’s stock has seen considerable price fluctuations over the past year, with a low of $1.62 and a high of $16.07. The 50-day and 200-day simple moving averages stand at $6.88 and $5.48, respectively. From a liquidity perspective, SoundHound AI has a current ratio and quick ratio of 2.58, and its debt-to-equity ratio is just 0.13.

Recent Earnings Report

SoundHound AI, Inc. shared its latest quarterly earnings data on November 12th. The company reported earnings of ($0.06) per share, surpassing analysts' expectations which had estimated ($0.07) per share. Revenue for the quarter reached $25.10 million, outperforming expectations of $23.02 million. Despite its growth, SoundHound AI faced a negative return on equity of 55.58% and a negative net margin of 163.58%. Compared to the same quarter last year, revenue has shown a remarkable increase of 88.7%, although the company recorded earnings of ($0.09) per share during that period. Analysts project that SoundHound AI, Inc. may report an adjusted -0.38 earnings per share for the current year.

Institutional Activity

Institutional investors have recently taken action regarding their positions in SoundHound AI. For instance, Kings Path Partners LLC invested in shares of SoundHound AI during the second quarter, acquiring a stake valued at about $28,000. Alongside this, International Assets Investment Management LLC also purchased a stake valued at $31,000. NBC Securities Inc. expanded its stake by 97.8% in the third quarter, now owning 7,720 shares valued at $35,000 after acquiring an additional 3,818 shares. Amalgamated Bank increased its stake in the company by 108%, now holding 9,819 shares worth $39,000 after buying more. Furthermore, Signaturefd LLC raised its shareholding by 27.3%, reaching ownership of 10,255 shares valued at around $41,000. Currently, 19.28% of SoundHound AI's stock is owned by institutional investors, indicating a significant level of institutional interest in the stock.

Analyst Insights

Various research analysts have issued reports on SoundHound AI, providing insight into their outlook on the stock. On September 26th, Wedbush reaffirmed an “outperform” rating and established a price target of $9.00. HC Wainwright raised their price target from $7.00 to $8.00 while issuing a “buy” rating as of November 14th. Similarly, DA Davidson reiterated a “buy” rating with a price target set at $9.50. Conversely, LADENBURG THALM/SH SH and Barclays both maintained a “neutral” rating, with price objectives of $7.00. Overall, three analysts maintain a hold rating while four have given SoundHound AI a buy rating, leading to a consensus rating of “Moderate Buy” and an average price target of $7.64.

Company Overview

SoundHound AI, Inc. specializes in creating independent voice artificial intelligence solutions tailored for various sectors like automotive, TV, IoT, and customer service. Their flagship product, the Houndify platform, provides a comprehensive set of tools for brands to develop conversational voice assistants. Their services include Application Programming Interfaces (APIs) for both text and voice interactions, support for custom commands, an extensive content library, and built-in analytics. This positions SoundHound AI as a significant player in the growing market for AI-driven conversational solutions.

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