SoundHound AI (NASDAQ:SOUN) Trading Down 3.6% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) dropped 3.6% during mid-day trading on Wednesday . The stock traded as low as $5.83 and last traded at $5.93. 29,422,973 shares traded hands during trading, an increase of 4% from the average daily volume of 28,365,691 shares. The stock had previously closed at $6.15.

More SoundHound AI News

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

• Positive Sentiment: SoundHound completed its acquisition of LivePerson and appointed former LivePerson executive John Collins as CFO. Management expects the leadership transition to improve financial integration and support a path toward sustainable profitability. The company’s strong second-quarter results, rapid year-over-year revenue growth and higher full-year guidance add to the bullish narrative. LivePerson Deal and New CFO Shift SoundHound’s Profitability Narrative
• Positive Sentiment: SoundHound’s Asia business has recorded new deals for five consecutive quarters, including growth in China and India. Continued expansion of its OASYS automotive AI platform supports expectations for international and automotive revenue growth. SoundHound Asia Growth Extends to Five Quarters
• Positive Sentiment: Analysts cited by American Banking News have an average price target of $13.00, well above recent trading levels. The target implies significant upside if SoundHound executes on its growth and profitability plans. SoundHound AI Receives $13 Average Price Target
• Neutral Sentiment: Compared with NVIDIA, SoundHound offers faster growth and narrowing losses but operates at a much smaller scale and remains unprofitable. That positions SOUN as a higher-risk, higher-volatility voice-AI growth stock. SoundHound vs. NVIDIA After Earnings
• Negative Sentiment: CEO Keyvan Mohajer, COO Michael Zagorsek, SVP Majid Emami and insider James Hom collectively sold approximately 285,863 shares at $6.33. The filings state the transactions were intended to cover tax withholding on vested equity awards, reducing their bearish significance, but the volume could still pressure investor sentiment. SoundHound AI Insider Stock Sales
• Negative Sentiment: SoundHound recently traded lower alongside other speculative software names such as UiPath and C3.ai, indicating continued investor caution toward unprofitable, high-beta AI companies. SoundHound AI and Speculative Software Selling

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on SOUN. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. Wall Street Zen upgraded SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Sunday, September 13th. Piper Sandler cut their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, August 6th. Finally, DA Davidson dropped their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, SoundHound AI has an average rating of “Moderate Buy” and a consensus target price of $13.00.

SoundHound AI Stock Up 1.2%

The firm has a market capitalization of $2.66 billion, a price-to-earnings ratio of -15.79 and a beta of 2.66. The stock’s 50-day moving average price is $6.69 and its 200 day moving average price is $7.22.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same period last year, the company posted ($0.19) EPS. The business’s revenue was up 45.0% on a year-over-year basis. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insider Buying and Selling

In other news, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. The trade was a 3.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of SoundHound AI 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 transaction, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. This represents a 4.44% 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 have sold 287,206 shares of company stock valued at $1,819,115 in the last quarter. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. NewEdge Advisors LLC raised its stake in SoundHound AI by 38.1% during the second quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock worth $855,000 after purchasing an additional 36,415 shares during the period. IFP Advisors Inc boosted its holdings in SoundHound AI by 10.7% in the 2nd quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after purchasing an additional 3,163 shares during the last quarter. Allworth Financial LP grew its stake in shares of SoundHound AI by 12.7% in the 2nd quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock valued at $146,000 after buying an additional 2,537 shares during the period. Waverly Advisors LLC grew its stake in shares of SoundHound AI by 6.9% in the 2nd quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock valued at $415,000 after buying an additional 4,138 shares during the period. Finally, Nykredit A S acquired a new stake in shares of SoundHound AI during the 2nd quarter worth approximately $165,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.