SoundHound AI, Inc. (NASDAQ:SOUN) experienced significant insider trading activity recently, with Senior Vice President Majid Emami selling a substantial number of shares. On December 26th, Emami sold 32,741 shares at an average price of $10.66, amounting to approximately $349,019.06. Following this transaction, he holds 532,845 shares, reflecting a decrease of 5.79% in his ownership.
This sale follows earlier transactions made by Emami, including the sale of 42,600 shares on December 22nd at an average price of $11.28, totaling about $480,528, and 41,167 shares sold on October 8th for an average of $20.00, earning him approximately $823,340.
In terms of market performance, SoundHound AI’s stock was trading at $10.41, down $0.29 during the market session, with 20,984,708 shares traded, compared to an average volume of 43,209,066. The company’s 50-day moving average stands at $13.38, while its 200-day moving average is $13.46. SoundHound AI has seen a low of $6.52 and a high of $23.50 within the past year, reflecting its volatility. The firm currently holds a market capitalization of $4.37 billion.
SoundHound AI reported its most recent quarterly earnings on November 6th, posting earnings per share (EPS) of ($0.03), surpassing analyst expectations of ($0.09) by $0.06. The company generated revenue of $42.05 million, which exceeded the anticipated $40.48 million and represented a remarkable 67.6% year-over-year increase. However, the firm continues to face a negative return on equity of 93.64% and a negative net margin of 211.16%.
Institutional investors have shown interest in SoundHound AI, with several hedge funds recently adjusting their positions. Danske Bank, Investors Research Corp, and Sound Income Strategies LLC have all increased their stakes in the company, showcasing growing confidence among institutional players.
Analysts have varied perspectives on SoundHound AI, with Weiss Ratings recommending a “sell” rating, while others like Wedbush and Cantor Fitzgerald have retained “outperform” and “overweight” ratings respectively, indicating a mixed outlook. The consensus rating stands at “Moderate Buy” with a targeted price of $17.07, suggesting potential upside based on current trading levels.
Founded in 2005, SoundHound AI specializes in voice AI, natural language understanding, and sound identification technologies. Its flagship product, the Houndify voice AI platform, empowers developers to create conversational intelligence across diverse applications, enhancing user engagement and interaction capabilities.
Despite the recent share sales by insiders, the strong revenue growth and interest from institutional investors suggest that SoundHound AI holds promise for future performance in the evolving tech landscape.