Cantor Fitzgerald Has Lowered Expectations for SoundHound AI (NASDAQ:SOUN) Stock Price

SoundHound AI (NASDAQ:SOUN) had its target price decreased by equities researchers at Cantor Fitzgerald from $15.00 to $10.00 in a report released on Friday, Benzinga reports. The brokerage currently has an “overweight” rating on the stock. Cantor Fitzgerald‘s price objective would indicate a potential upside of 134.74% from the company’s previous close.

Other analysts have also recently issued research reports about the stock. Yorkville Ives initiated coverage on shares of SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 target price on the stock. Wall Street Zen upgraded shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday, October 24th. DA Davidson lowered their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Piper Sandler lowered their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. Finally, Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $10.50.

SoundHound AI Stock Down 1.4%

NASDAQ SOUN opened at $4.26 on Friday. The firm has a market capitalization of $1.89 billion, a PE ratio of -11.21 and a beta of 2.89. The stock’s 50 day moving average is $5.56 and its 200 day moving average is $7.06. SoundHound AI has a twelve month low of $3.88 and a twelve month high of $15.68.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.12) by $0.07. The business had revenue of $62.43 million during the quarter, compared to the consensus estimate of $61.71 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The firm’s quarterly revenue was up 48.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.03) earnings per share. On average, research analysts anticipate that SoundHound AI will post -0.39 earnings per share for the current year.

Insider Buying and Selling

In other SoundHound AI news, insider James Hom sold 38,730 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the insider directly owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. The trade was a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the business’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $869,045.70. Following the completion of the sale, the chief executive officer directly owned 3,684,947 shares in the company, valued at $23,325,714.51. This trade represents a 3.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 288,758 shares of company stock worth $1,828,598 in the last 90 days. Corporate insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of the stock. Hollencrest Capital Management raised its holdings in SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after acquiring an additional 2,400 shares during the last quarter. Financial Management Professionals Inc. bought a new position in SoundHound AI in the 3rd quarter valued at approximately $30,000. Fulcrum Asset Management LLP purchased a new stake in SoundHound AI during the 3rd quarter valued at $45,000. 180 Wealth Advisors LLC purchased a new stake in SoundHound AI during the 1st quarter valued at $69,000. Finally, Krilogy Financial LLC purchased a new stake in SoundHound AI during the 3rd quarter valued at $62,000. 19.28% of the stock is currently owned by institutional investors.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: Q3 revenue reached a record $62.4 million, up 48.5% year over year. The company also reported an adjusted loss per share that was narrower than analysts expected. SoundHound AI Q3 results and outlook
• Positive Sentiment: Management expects sustained adjusted EBITDA profitability in the second half of 2027, supported by a $120 million cost plan. That outlook gives investors a target for improving margins, though it remains some time away. SoundHound AI shares and guidance
• Positive Sentiment: An expanded Ultraviolette partnership will bring SoundHound’s voice AI to the electric motorcycle maker’s global lineup, including hands-free, in-helmet controls. The deal adds to its automotive reach, although the near-term revenue impact was not disclosed. Ultraviolette partnership expansion
• Neutral Sentiment: The company has closed its LivePerson acquisition and is integrating the business alongside its cost-reduction efforts. Successful integration could support efficiency, but delivery of the savings is an execution factor for investors to monitor. Q3 2026 earnings call transcript
• Negative Sentiment: Despite rapid growth, SoundHound remained deeply unprofitable on a GAAP basis, and reports differed on whether revenue narrowly beat or missed estimates. The combination of ongoing losses and a profitability target not expected until late 2027 may be tempering enthusiasm for the results. Q3 loss and revenue estimates

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.