Don't Ignore The Insider Selling In SoundHound AI
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$869k worth of stock at a price of US$6.33 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.6%.
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. They previously made an even bigger sale of -US$2.2m worth of shares at a price of US$16.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$5.93). So it is hard to draw any strong conclusion from it.
Insiders in SoundHound AI didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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
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?
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. It's great to see that SoundHound AI insiders own 9.7% of the company, worth about US$257m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At SoundHound AI Tell Us?
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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, SoundHound AI has 3 warning signs (and 1 which is a bit unpleasant) we think you should know about.
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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