Piper Sandler Has Lowered Expectations for SoundHound AI (NASDAQ:SOUN) Stock Price

SoundHound AI (NASDAQ:SOUN) had its price objective cut by Piper Sandler from $8.00 to $7.00 in a research note issued to investors on Thursday,Benzinga reports. The firm presently has a “neutral” rating on the stock. Piper Sandler’s price target suggests a potential downside of 2.13% from the stock’s previous close.

A number of other brokerages also recently weighed in on SOUN. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. DA Davidson reissued a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research note on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus price target of $14.64.

SoundHound AI Price Performance

Shares of SoundHound AI stock traded up $0.72 on Thursday, hitting $7.15. 63,244,978 shares of the company’s stock traded hands, compared to its average volume of 28,611,475. The firm’s 50-day moving average price is $6.84 and its two-hundred day moving average price is $7.63. The stock has a market capitalization of $3.10 billion, a PE ratio of -15.27 and a beta of 2.64. SoundHound AI has a one year low of $5.65 and a one year high of $22.17.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The company had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. During the same quarter in the prior year, the company posted ($0.06) EPS. The company’s revenue for the quarter was up 51.7% compared to the same quarter last year. On average, analysts forecast that SoundHound AI will post -0.45 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, SVP Majid Emami sold 28,843 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the senior vice president owned 472,983 shares in the company, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Ming Hom sold 28,843 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the sale, the insider directly owned 743,521 shares in the company, valued at approximately $5,546,666.66. This trade represents a 3.73% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock worth $1,999,444 in the last ninety days. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of SoundHound AI by 4.4% in the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the period. Rakuten Securities Inc. raised its position in shares of SoundHound AI by 877.9% in the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock worth $3,326,000 after acquiring an additional 299,492 shares in the last quarter. UBS Group AG lifted its stake in shares of SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. boosted its position in shares of SoundHound AI by 140.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock valued at $2,826,000 after purchasing an additional 155,743 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after purchasing an additional 273,097 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI News Roundup

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

• Positive Sentiment: Revenue and guidance beat expectations: Q2 revenue reached a record $61.9 million, up 45% year over year and above estimates near $52–$53 million. SoundHound also raised its FY 2026 revenue outlook to $230 million–$260 million, implying a midpoint above the current consensus estimate of $232.5 million. SoundHound AI Reports Record Q2 and Raises Full-Year Outlook
• Positive Sentiment: Profitability metrics improved: Gross profit increased 67.6% to $27.9 million, while the reported $0.10-per-share loss was narrower than the consensus loss of $0.13. The results reinforced the company’s growth narrative, although SoundHound remains unprofitable. SoundHound AI Reports Bullish Q2
• Positive Sentiment: Enterprise demand remains a catalyst: Management highlighted adoption of its OASYS platform and agentic AI offerings, supporting investor expectations for sustained growth. The expanded deployment of SoundHound’s Emily voice agent at MUSC Health also provides a commercial validation point.
• Positive Sentiment: Speculative bullish positioning increased: Investors purchased 120,933 call options, 51% above typical call volume. Heavy short interest—reported at roughly 42%—could amplify upward moves if bullish momentum continues, though it also raises volatility risk.
• Neutral Sentiment: Analyst sentiment is supportive but not newly decisive: Coverage continues to describe SoundHound as attractive, with previously published price targets ranging from $9 to $20. No significant fresh rating change was identified in the reports.
• Negative Sentiment: Losses and cash burn remain concerns: SoundHound posted a substantial operating loss of $43.3 million and used $33.7 million in operating cash during the quarter. Its negative margins mean the stock’s valuation remains highly dependent on future growth and eventual profitability.
• Negative Sentiment: Insider selling may weigh on confidence: Reported insider transactions over the past six months consisted of sales rather than purchases, including sales by senior executives. This is a secondary concern compared with the earnings beat but may reinforce volatility.

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.