Insider Selling: SoundHound AI, Inc. VP Majid Emami Sells 298,086 Shares

On December 9th, Majid Emami, the Vice President of SoundHound AI, Inc. (NASDAQ:SOUN), sold a significant number of shares—specifically, 298,086 shares. The sale took place at an average price of $15.04 per share, resulting in a total transaction value of $4,483,213.44. After this transaction, Emami's ownership in the company now stands at 735,685 shares, which are currently valued at $11,064,702.40. This sale translates to a decrease of 28.83% in his stake in the company. Details of the sale were made public through a filing with the Securities and Exchange Commission (SEC), which investors can review.

Additionally, Majid Emami has been active in the stock market, having made other notable trades recently. For instance, on December 6th, he sold 368,662 shares of SoundHound AI stock at an average price of $15.00, amounting to a total of $5,529,930.00. Earlier, on December 2nd, he sold 94,067 shares at an average price of $9.05, yielding a total of $851,306.35. These transactions are part of ongoing trading activity by Emami.

SoundHound AI Stock Overview

During midday trading on the following Tuesday, the price of SOUN stock experienced a drop of $0.83, bringing it down to $14.23 per share. The day saw a trading volume of 88,813,180 shares, notably higher than the average volume of 37,752,652 shares. SoundHound AI has a market capitalization of $5.26 billion, with a price-to-earnings ratio of -39.53 and a beta of 3.03. Over the past year, the stock has fluctuated significantly, with a low of $1.62 and a high of $16.07. Moving averages also show promising trends, with a 50-day average at $6.88 and a 200-day average at $5.48. The company's ratios indicate strong liquidity, as seen with a current ratio of 2.58 and a quick ratio of 2.58, alongside a low debt-to-equity ratio of 0.13.

Recent Earnings Report for SoundHound AI

On November 12th, SoundHound AI reported its latest quarterly earnings, which revealed earnings per share (EPS) of ($0.06), a slight improvement over analysts' expectations of ($0.07). The company generated revenue of $25.10 million for the quarter, exceeding forecasts of $23.02 million. Despite this positive revenue growth, the company posted a negative return on equity of 55.58% and a net margin of -163.58%. Year-over-year revenue saw an increase of 88.7%, contrasting with the same quarter last year when the EPS was ($0.09). Given the current performance, analysts predict SoundHound AI will end the year with an EPS of -0.38.

Institutional Investor Activity

The interest from institutional investors in SoundHound AI has been noteworthy, with several hedge funds adjusting their positions recently. Kings Path Partners LLC acquired a new stake in the company worth approximately $28,000, while International Assets Investment Management LLC added a new stake valued at about $31,000. NBC Securities Inc. also significantly increased its holdings by 97.8% in the third quarter, now owning 7,720 shares valued at $35,000 after acquiring additional shares. Amalgamated Bank grew its stake by 108%, now holding 9,819 shares worth $39,000, and Signaturefd LLC increased its investment by 27.3%, now owning 10,255 shares valued at $41,000. Currently, institutional investors control approximately 19.28% of the stock.

Analysts' Insights on Price Targets

SoundHound AI has attracted attention from analysts who have set various price targets for the stock. Wedbush provided an 'outperform' rating with a price target of $9.00 on September 26th. HC Wainwright subsequently raised their target from $7.00 to $8.00, maintaining a 'buy' rating on November 14th. DA Davidson reiterated a 'buy' rating with a price target of $9.50 reported by the end of September. On the other hand, LADENBURG THALM/SH SH and Barclays both restated their 'neutral' ratings, with respective price objectives of $7.00. The consensus among numerous analysts gives the stock a moderate buy rating with an average target price around $7.64.

About SoundHound AI, Inc.

SoundHound AI, Inc. specializes in developing independent voice artificial intelligence solutions. Their offerings support various industries, including automotive, television, and the internet of things (IoT). The core of its products includes the Houndify platform, which provides resources for businesses to build conversational AI assistants. This includes tools for text and voice queries, custom commands, and a library of domains to enhance user experience.

Insider, Trading, Finance