Have Insiders Sold SoundHound AI Shares Recently?

Some SoundHound AI, Inc. (NASDAQ:SOUN) shareholders may be a little concerned to see that the Co-Founder, Keyvan Mohajer, recently sold a substantial US$2.2m worth of stock at a price of US$16.00 per share. However, that sale only accounted for 5.3% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At SoundHound AI

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$20.30 per share in a -US$2.5m sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$16.35). So it may not tell us anything about how insiders feel about the current share price.

Insiders in SoundHound AI didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for SoundHound AI

I will like SoundHound AI better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of SoundHound AI

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SoundHound AI insiders own 10% of the company, currently worth about US$748m based on the recent share price. 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 SoundHound AI shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - SoundHound AI has 3 warning signs we think you should be aware of.

But note: SoundHound AI may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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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.