In a recent transaction, Michael Zagorsek, the Chief Operating Officer of SoundHound AI , Inc. (NASDAQ:SOUN), sold 24,105 shares of the company's Class A Common Stock. The sale, dated March 19, 2024, was executed at a price of $8.3656 per share, resulting in a total transaction value of approximately $201,652.
The transaction was disclosed in a filing with the Securities and Exchange Commission (SEC), which noted that the sale was conducted to satisfy tax withholding obligations related to the vesting of restricted stock units granted to Zagorsek on various dates throughout 2022 and 2023.
Following the sale, Zagorsek's remaining holdings in SoundHound AI include 776,852 shares of Class A Common Stock. This figure also accounts for 5,462 shares acquired in November 2023 through the company's 2022 Employee Stock Purchase Plan.
SoundHound AI, headquartered in Santa Clara, California, operates in the prepackaged software industry and is known for incorporating artificial intelligence into its products. The company's stock is publicly traded under the ticker symbol SOUN on the NASDAQ stock exchange.
Investors often monitor the buying and selling activities of company executives as these transactions can provide insights into the executives' perspectives on the company's future performance. However, it is important to note that there are various reasons for such transactions, and they do not necessarily indicate a definitive trend.
The sale by Zagorsek was effected through a power of attorney, with Warren Heit authorized to execute the transaction on his behalf. The power of attorney arrangement was established on May 5, 2022.
SoundHound AI has not made any public statement regarding this recent sale by its COO, and the transaction appears to be a routine part of executive compensation and stock ownership management.
InvestingPro Insights
SoundHound AI, Inc.'s (NASDAQ:SOUN) recent executive stock sale coincides with a period of notable price volatility. The company's stock has experienced a significant drop over the past week, with a -25.03% one-week total price return. This decline is contrasted by a remarkable 68.26% one-month total price return, highlighting the high price volatility that the stock generally trades with, as noted in one of the InvestingPro Tips.
Despite the fluctuations, analysts see potential in the company's growth, expecting sales to increase in the current year. This optimism is supported by the company's impressive revenue growth of 47.36% over the last twelve months as of Q1 2023. However, another InvestingPro Tip indicates that analysts have revised their earnings expectations downwards for the upcoming period, suggesting that while sales may grow, profitability could remain a challenge.
Investors evaluating SoundHound AI's financials will also note the company's high Price / Book multiple of 147.69, which points to a high revenue valuation multiple. This metric, coupled with the fact that the company has not been profitable over the last twelve months, may influence investment decisions.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, which can provide more nuanced insights into SoundHound AI's performance and outlook. To explore these further, visit https://www.investing.com/pro/SOUN and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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