In a recent transaction, Keyvan Mohajer, CEO SoundHound AI , Inc. (NASDAQ:) sold part of its shares in the company. The transaction, which took place on March 22, 2024, included the sale of 31,665 shares of Class A common stock at a weighted average price of $6.0778 per share for a total consideration of approximately $192,453.
The sale was carried out pursuant to a pre-agreed trading plan known as the Rule 10b5-1 plan, which Mohajer accepted last December. These plans allow company insiders to sell shares over a predetermined period of time to avoid charges of insider trading.
The shares were sold in multiple transactions at prices ranging from $5.86 to $6.39, according to the filing. This indicates that Mohajer took advantage of changes in market prices during the day to make the sale. Following this transaction, Mohajer continues to own a significant interest in the company, with 1,137,831 shares of Class A common stock remaining in his possession.
Investors often keep a close eye on insider transactions as they can provide insight into management’s confidence in a company’s future prospects. However, executives also often sell shares for personal financial planning purposes unrelated to their views on the company’s performance.
SoundHound AI, a Delaware-based turnkey software services company, is known for its voice artificial intelligence and conversational intelligence technologies. The company’s shares are publicly traded under the ticker symbol SOUN on the NASDAQ exchange.
InvestingAbout Insights
SoundHound AI, Inc. (NASDAQ:SOUN) is making waves in the market with its innovative voice-enabled artificial intelligence technologies. As investors digest news of CEO Keyvan Mohajer’s recent stock sale, a few key metrics and insights from InvestingPro can provide deeper insight into the company’s financial health and stock performance.
First, the company has a market capitalization of $2.06 billion, reflecting investor confidence in its growth potential. Despite challenging market conditions, SoundHound AI’s revenue growth has been impressive, growing 47.36% over the past twelve months through Q1 2023. This suggests that the company is expanding its presence and effectively monetizing its technology.
However, SoundHound AI operates with a negative P/E ratio of -20.92 and analysts do not expect the company to be profitable this year, according to InvestingPro tips. This equates to the company’s reported operating profit margin of -139.63%, highlighting SoundHound AI’s significant investments in its technology and market expansion that have yet to translate into bottom line profit.
InvestingPro’s tips also show that the stock has experienced high volatility, with significant price gains over the past six months, culminating in a total return of 237.36%. This level of volatility may attract investors looking for high-return opportunities, but it also indicates a higher risk profile that should be considered.
For those interested in more comprehensive analysis, there are additional InvestingPro tips for SoundHound AI that can be accessed on the company-specific InvestingPro page. Using coupon code PRONEWS24Readers can receive an additional 10% discount on annual or biennial Pro and Pro+ subscriptions, providing valuable information for making investment decisions.
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