Recent developments at SoundHound AI, Inc. (NASDAQ: SOUN) have raised eyebrows among shareholders. Co-Founder Keyvan Mohajer executed a notable divestiture, liquidating US$2.2 million worth of shares at a price of US$16.00 each.
While this sale comprised only 5.3% of their total holdings, it may nevertheless evoke concerns regarding their confidence in the company’s trajectory.
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The Last Year of Insider Transactions at SoundHound AI
It is pertinent to note that Mohajer’s recent stock disposal was not an isolated event; earlier this year, they also sold shares worth US$2.5 million at US$20.30 each. Although insider selling is typically viewed with skepticism, the lower sale price arouses further concerns.
The silver lining, however, lies in the fact that this transaction occurred above the current share price of US$16.35, suggesting that insider sentiment about the price may not be overwhelmingly negative.
Throughout the past year, no additional shares were purchased by insiders at SoundHound AI. Refer to the chart below for comprehensive details on insider transactions, specifying who sold what, at which price, and when.
My perspective on SoundHound AI would undoubtedly brighten with some significant insider purchases. In the interim, consider this free list of undervalued, small-cap stocks reflecting considerable recent insider buying.
Insider Ownership of SoundHound AI
It is crucial for shareholders to examine the extent of insider ownership within a company. Generally, greater insider ownership increases the likelihood that management will act in the best interests of shareholders over the long term.
Currently, insiders own 10% of SoundHound AI, which equates to approximately US$748 million based on the recent trading price. This level of ownership is encouraging, as it enhances the prospects that executives are aligned with shareholder interests.
What Insights Does This Data Provide Regarding SoundHound AI Insiders?
While insiders have recently sold shares of SoundHound AI without making any purchases, this trend evokes some caution.
Despite a robust level of insider ownership, the history of share sales generates a certain degree of apprehension.
Understanding insider activities is essential in assessing a company’s risks. SoundHound AI currently presents three red flags that require careful consideration.
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This article by RS Web Solutions and Simply Wall St is intended for informational purposes. Our commentary is derived from historical data and analyst predictions, utilizing an unbiased methodology, and is not meant as financial advice.
It does not constitute a recommendation to buy or sell any securities, nor does it consider individual financial objectives or situations. Our aim is to provide long-term insights driven by fundamental data, and it may not account for the latest price-sensitive corporate announcements or qualitative factors. RS Web Solutions and Simply Wall St maintain no positions in any stocks mentioned.
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