SoundHound AI, Inc. (NASDAQ:SOUN) experienced a decline in its share price, slipping 3.3% during mid-day trading on Wednesday. The stock traded as low as $10.79 before closing at $10.80, significantly lower than its previous close of $11.17. The trading volume was approximately 8 million shares, a notable drop of 79% compared to its average daily volume of around 39 million shares.
Recent analyst reports have prompted shifts in price targets for SoundHound AI. Wedbush has downgraded its price objective from $22.00 to $15.00, while DA Davidson reduced its target from $13.00 to $10.00, both maintaining a “buy” rating. Piper Sandler reiterated a “neutral” rating with a target of $12.00, and HC Wainwright adjusted their target from $26.00 to $18.00, also maintaining a “buy” stance. Currently, consensus among analysts indicates a “Hold” rating with an average target price of $10.50.
The company’s recent earnings report on May 8 revealed a loss of $0.06 per share, better than the anticipated loss of $0.09 per share, showcasing a strong performance relative to expectations. The revenue for the quarter stood at $29.13 million, a 151.2% increase compared to the same quarter last year, yet it fell short of analysts’ projections of $30.38 million.
Insider trading activity has also been notable; several insiders, including James Ming Hom and CFO Nitesh Sharan, sold significant portions of their stock at around $9.36 per share. Collectively, this indicates a substantial decrease in insider ownership.
Institutional investors have shown increasing interest in SoundHound AI, with Vanguard Group boosting its stake by 9.5% in the first quarter, among other hedge funds also increasing their holdings.
In affirmation of SoundHound AI’s innovative edge, the company develops independent voice AI solutions that enhance customer experiences across various sectors, including automotive and customer service. Their platforms, like Houndify and SoundHound Chat AI, are designed to provide businesses with conversational capabilities and real-time data interactivity.
This adaptability and focus on emerging AI applications illustrate the company’s potential for growth, even amid current market fluctuations. As SoundHound AI continues to innovate and attract institutional interest, there remains hope for a positive trajectory in future performance as the technology landscape evolves.