Shares of U.S.-based SoundHound AI (SOUN) fell after key executives sold a significant portion of their Class A stock. The insider sales have raised concerns among investors, prompting a pullback in the company’s share price. SOUN stock has declined by over 7% on Thursday as of this writing.
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Insiders selling shares can sometimes indicate concerns about the company, though personal reasons such as diversification or liquidity needs may also play a role. Investors closely monitor these transactions for signals about management’s confidence and the company’s growth prospects. SoundHound AI’s latest insider sales come after SOUN’s stock has surged more than 60% over the past six months, suggesting that some executives may be taking profits while investors weigh the implications for future performance.
A Detailed Look at SOUN’s Insider Moves
According to Form 4 filings with the SEC on September 22, key executives of SoundHound sold shares in multiple transactions. CEO Keyvan Mohajer led the sales, selling 138,523 shares worth $2.22 million. Meanwhile, COO Michael Zagorsek sold 69,837 shares for $1.12 million, and CTO Timothy Stonehocker sold 37,570 shares valued at $601,120.
Additionally, CPO James Ming Hom and VP of Engineering Majid Emami each sold 42,119 shares, totaling $673,904 per transaction. These moves represent significant stock activity among the company’s top leadership.
Overall, SOUN stock currently shows a Very Negative Insider Confidence Signal on TipRanks, driven by informative sell transactions totaling $5.3 million over the past three months.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and three Holds assigned in the last three months. The average SoundHound stock price target is $15.43, suggesting a potential downside of 7.27% from the current level.
