We note that the SoundHound AI, Inc. (NASDAQ:SOUN) Chief Technology Officer Timothy Stonehocker recently sold $73,000 worth of stock at $1.59 per share. However, we note that the sale only reduced their stake by 4.1%.
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SoundHound AI insider trades over the past year
Over the past year, we can see that the largest insider buy was made by independent director Eric R. Ball for US$96,000 worth of stock, at around US$4.80 per share. This means that an insider was happy to buy shares above the current price of US$1.52. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. In our view, the price an insider pays for a stock is very important. It is encouraging to see an insider paid above the current stock price, as it suggests that they have perceived value even at higher levels. The only individual insider to buy in the past year was Eric R. Ball.
Timothy Stonehocker sold a total of 57,890 shares during the year at an average price of $1.87. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
If you’re like me, then you not want to miss this free list of growing companies insiders are buying.
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. I think it’s a good sign if insiders have a significant number of shares in the company. Insiders own 22% of SoundHound AI shares, worth approximately $65 million. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
What could insider trading at SoundHound AI tell us?
An insider hasn’t bought any SoundHound AI stock in the past three months, but there have been some sales. And our longer-term analysis of insider trading didn’t provide confidence either. Insiders hold shares, but we remain quite cautious, given the history of sales. We would exercise caution before purchasing! While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making an investment decision. Example: we have identified 5 warning signs for SoundHound AI you should be aware of, and 2 of them can’t be ignored.
Sure SoundHound AI may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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