Why SoundHound AI Stock Is Moving Lower Wednesday

SoundHound AI Inc SOUN shares are trading lower Wednesday morning after the company filed for an offering of up to $150 million of its common stock.

What Happened: In a new regulatory filing, SoundHound said it entered into an equity distribution agreement in which the company may offer and sell up to $150 million of its Class A common stock from time to time in an at-the-market equity program.

Managers for the offering include Citigroup Global Markets, Barclays Capital, Wedbush Securities, Northland Securities and Ladenburg Thalmann & Co. Under the Agreement, the managers will be entitled to a commission at a fixed rate of 2.5% of the gross sales price of shares.

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Is SOUN A Good Stock To Buy

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like SoundHound AI‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. SoundHound AI does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on SoundHound AI will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

SOUN Price Action: SoundHound shares were down 9.89% at $4.37 at the time of publication, according to Benzinga Pro.

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