SoundHound AI (NASDAQ:SOUN) Trading Down 4.1% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) fell 4.1% during mid-day trading on Wednesday . The stock traded as low as $8.15 and last traded at $8.16. 18,768,158 shares changed hands during mid-day trading, a decline of 31% from the average session volume of 27,179,471 shares. The stock had previously closed at $8.51.

Key Stories Impacting SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Q4 results showed accelerating revenue (roughly +59% year-over-year) and revenue that beat consensus, supporting bullish views that SoundHound is capturing demand for agentic AI voice solutions. Analysts Split After SoundHound AI, Inc. (SOUN) Reports Q4 Results
• Positive Sentiment: D.A. Davidson reiterated a Buy rating with a $14 price target after the quarter, giving a clear bullish signal that at least one institutional analyst sees upside vs. current levels. Analysts Split After SoundHound AI, Inc. (SOUN) Reports Q4 Results (Yahoo)
• Positive Sentiment: Long-form bullish coverage (Motley Fool) highlights continued revenue momentum and positions SoundHound as an “agentic AI” play, which can attract growth-oriented investors if execution continues. As Revenue Continues to Surge, Is SoundHound Stock a Buy?
• Neutral Sentiment: Market interest is elevated — Zacks and other outlets flag SOUN as a “trending” ticker, which can amplify intraday moves but doesn’t by itself resolve direction. SoundHound AI, Inc. (SOUN) Is a Trending Stock
• Neutral Sentiment: Analyst coverage is mixed overall — several pieces recap the split views and longer-term growth expectations, leaving near-term direction tied to order flow and execution. Analysts Offer Insights on Technology Companies
• Negative Sentiment: HC Wainwright published a pessimistic forecast for SOUN’s stock price, adding downside pressure by reducing street enthusiasm and increasing selling interest. HC Wainwright Issues Pessimistic Forecast for SoundHound AI (NASDAQ:SOUN) Stock Price
• Negative Sentiment: An analyst downgrade and ensuing gap-down trade amplified the pullback, reflecting that some brokers are shifting to a more cautious stance despite the revenue beat. SoundHound AI (NASDAQ:SOUN) Shares Gap Down After Analyst Downgrade

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on SOUN. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Piper Sandler reaffirmed a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Down 4.1%

The company’s 50-day simple moving average is $9.48 and its 200 day simple moving average is $12.78. The stock has a market cap of $3.43 billion, a P/E ratio of -163.17 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting analysts’ consensus estimates of ($0.02). The business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.82% and a negative net margin of 8.71%.SoundHound AI’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same period last year, the company posted ($0.05) earnings per share. Research analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI news, CFO Nitesh Sharan sold 60,780 shares of the business’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the transaction, the chief financial officer directly owned 1,705,148 shares in the company, valued at $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Majid Emami sold 42,600 shares of the stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $480,528.00. Following the transaction, the senior vice president directly owned 565,586 shares of the company’s stock, valued at $6,379,810.08. This represents a 7.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 460,922 shares of company stock worth $5,199,073 in the last ninety days. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the company. Northwestern Mutual Wealth Management Co. raised its stake in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its stake in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S purchased a new stake in SoundHound AI during the third quarter valued at about $26,000. Advisors Asset Management Inc. lifted its holdings in SoundHound AI by 68.4% during the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after purchasing an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management bought a new position in SoundHound AI during the fourth quarter worth about $27,000. 19.28% of the stock is owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.