Have SoundHound AI Insiders Been Selling Stock?
We wouldn't blame SoundHound AI, Inc. (NASDAQ:SOUN) shareholders if they were a little worried about the fact that Keyvan Mohajer, the Co-Founder recently netted about US$1.6m selling shares at an average price of US$11.28. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.2%.
SoundHound AI Insider Transactions Over The Last Year
Notably, that recent sale by Co-Founder Keyvan Mohajer was not the only time they sold SoundHound AI shares this year. Earlier in the year, they fetched US$9.36 per share in a -US$2.4m sale. That means that an insider was selling shares at slightly below the current price (US$10.04). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of Keyvan Mohajer's holding.
In the last year SoundHound AI insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for SoundHound AI
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does SoundHound AI Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. SoundHound AI insiders own about US$411m worth of shares (which is 9.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About SoundHound AI Insiders?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SoundHound AI. In terms of investment risks, we've identified 2 warning signs with SoundHound AI and understanding these should be part of your investment process.
Of course SoundHound AI may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.