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$944k worth of stock at a price of US$7.46 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 6.1%.

SoundHound AI Insider Transactions Over The Last Year

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. 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$7.12). So it may not tell us anything about how insiders feel about the current share price.

In the last year SoundHound AI insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. SoundHound AI insiders own about US$258m worth of shares (which is 8.4% 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.

What Might The Insider Transactions At SoundHound AI Tell Us?

Insiders haven't bought SoundHound AI stock in the last three months, but there was some selling. 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. While conducting our analysis, we found that SoundHound AI has 3 warning signs and it would be unwise to ignore them.

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.

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.