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$845k selling shares at an average price of US$6.79. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.7%.

The Last 12 Months Of Insider Transactions At SoundHound AI

In fact, the recent sale by Co-Founder Keyvan Mohajer was not their only sale of SoundHound AI shares this year. Earlier in the year, they fetched US$9.36 per share in a -US$2.4m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$6.48. So it may not tell us anything about how insiders feel about the current share price.

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

I will like SoundHound AI better if I see some big insider buys.

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. It's great to see that SoundHound AI insiders own 8.6% of the company, worth about US$231m. 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 Do The SoundHound AI Insider Transactions Indicate?

Insiders sold SoundHound AI shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that SoundHound AI is showing 2 warning signs in our investment analysis, and 1 of those is concerning...

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.

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.