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On the recent transaction, CEO Keyvan Mohajer said: Soundhound AI , Inc. (NASDAQ:) sold a portion of its holdings in the company. The transaction, which occurred on March 22, 2024, included 31,665 shares of Class A common stock sold at a weighted average price of $6.0778 per share, for gross proceeds of approximately $192,453.
The sale was effected pursuant to a pre-arranged transaction plan known as a Rule 10b5-1 plan adopted by Mr. Mohajer in December of the previous year. These plans allow company insiders to sell stock over a predetermined period of time to avoid accusations of trading on nonpublic information.
The stock was sold in multiple transactions at prices ranging from $5.86 to $6.39, according to filings. This indicates that Mr. Mohajer took advantage of fluctuating market prices throughout the day to execute his sales. Following this transaction, Mr. Mohajer continues to own a significant stake in the Company and continues to own 1,137,831 shares of Class A common stock.
Investors often pay close attention to insider transactions as it can give them insight into management's confidence in a company's future prospects. However, executives often sell stocks for personal financial planning purposes, regardless of the company's financial outlook.
SoundHound AI is a Delaware corporation specializing in prepackaged software services and known for voice-enabled AI and conversational intelligence technology. The company's stock is traded on the Nasdaq Exchange under the ticker SOUN.
Investment Pro Insights
SoundHound AI, Inc. (NASDAQ:SOUN) is making waves in the market with its innovative voice-enabled AI technology. As investors digest the news of CEO Keyvan Mohajer's recent stock sale, some key metrics and insights from InvestingPro provide a deeper understanding of the company's financial health and stock price performance. Helpful.
First, the company's market capitalization stands at a solid $2.06 billion, reflecting investor confidence in its growth potential. Despite the tough market, SoundHound AI's revenue growth has been impressive, increasing by 47.36% over the past 12 months as of Q1 2023. This suggests that the company is expanding its reach and monetizing its technology effectively.
However, SoundHound AI's P/E ratio is operating at a negative -20.92, and analysts do not expect the company to be profitable this year, as shown by InvestingPro Tips. This is in line with the company's reported operating margin of -139.63%, indicating that SoundHound AI is investing heavily in technology and market expansion, which is not yet reflected in its net income. It's highlighted.
InvestingPro Tips also reveals that this stock experienced high volatility with significant price appreciation over the past six months, ultimately reaching a price total return of 237.36%. This level of volatility may attract investors looking for high reward opportunities, but it also presents a higher risk profile to consider.
For those interested in a more comprehensive analysis, there are additional InvestingPro Tips available on SoundHound AI, which can be accessed from the company-specific InvestingPro page.By using coupon code pro news 24readers can save an additional 10% on annual or biennial Pro and Pro+ subscriptions and gain valuable insights to help make investment decisions.
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