SoundHound AI Inc.’s Executives Cash Out as Stock Continues to Slide
SoundHound AI Inc. (NASDAQ: SOUN), a prominent player in the voice-enabled AI and conversational intelligence technology sector, has recently been in the spotlight due to significant insider selling activities and stock price volatility.
The company’s top executives, including the CEO, COO, and VP of Engineering, have sold many shares, raising questions about their confidence in the firm’s prospects. This insider selling coincides with a noticeable downturn in SoundHound AI stock price.
Insider Selling at SoundHound AI Inc.
In a series of transactions on March 19, 2024, critical insiders at SoundHound AI Inc., a leader in voice-enabled AI and conversational intelligence technologies, sold their shares.
Michael Zagorsek, the Chief Operating Officer, disposed of 24,105 shares at an average price of $8.37, resulting in a total sale value of approximately $201,718.85. Meanwhile, Keyvan Mohajer, the company’s CEO and 10% owner sold 48,837 shares at the same price point, amassing about $408,837.79 from the transaction.
Further sales underscored the trend, with Majid Emami, Vice President of Engineering, selling 17,041 shares at an average price of $8.3656, which netted approximately $142,558. This sale was particularly noted to satisfy tax withholding obligations related to vesting shares from restricted stock units granted to Emami. Additionally, Eric R. Ball, a company director, liquidated 90,000 shares at an average price of $5.94, collecting around $534,810.
SoundHound AI Inc. Continues Downturn in Premarket Trading Friday
SoundHound AI Inc. witnessed notable volatility in its stock price in recent trading, underscoring the fluctuating investor sentiment surrounding the voice-enabled AI and conversational intelligence technology firm.
The stock closed at $6.68 on Thursday, experiencing a sharp decline of $1.25, or -15.76%. This downturn continued in pre-market trading, where it was already down by $0.64, or -9.58%, at the time of writing.
The movement marked a significant shift from its previous close of $7.93, despite opening slightly higher at $8.00, only fluctuating between $6.65 and $8.42 throughout the trading day. This trading pattern reflects the broader challenges and investor perceptions facing the tech company in a highly competitive market.
The company’s stock performance over the last year has been equally tumultuous, with a 52-week range between $1.49 and $10.25. This illustrates the high volatility and potential risk associated with SoundHound AI’s shares. On the most recent insider transactions date, SoundHound AI Inc.’s market capitalization stood at approximately $2.066 billion.
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Disclaimer: The author does not hold or have a position in any securities discussed in the article.