SoundHound AI (NASDAQ:SOUN) Stock Moved Down to "Strong Sell" by Wall Street Zen

Key Points

• Wall Street Zen downgraded SoundHound AI to “strong sell” from “sell,” adding to mixed analyst sentiment. Despite the downgrade, MarketBeat reports a consensus “moderate buy” rating and a $12.75 price target.
• SoundHound shares opened at $6.04, near their 52-week low of $5.65 and well below the $22.17 high. Piper Sandler also cut its price target to $6 and assigned a neutral rating.
• The company beat quarterly expectations with a loss of $0.02 per share versus the expected $0.13 loss, while revenue rose 45% year over year to $61.9 million. However, SoundHound remains unprofitable, with a negative net margin of 67.45%, and insiders sold $1.83 million of stock last quarter.

SoundHound AI (NASDAQ:SOUN - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Saturday, Wall Street Zen reports.

Several other equities research analysts have also weighed in on SOUN. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Friday, September 11th. DA Davidson lowered their price target on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Finally, Piper Sandler reduced their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a "neutral" rating for the company in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $12.75.

SoundHound AI Trading Down 1.0%

Shares of NASDAQ:SOUN opened at $6.04 on Friday. The stock has a market capitalization of $2.68 billion, a PE ratio of -15.89 and a beta of 2.66. SoundHound AI has a 1 year low of $5.65 and a 1 year high of $22.17. The firm has a fifty day moving average price of $6.64 and a 200 day moving average price of $7.14.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly 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. The company had revenue of $61.90 million during the quarter, compared to analysts' expectations of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business's quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.19) earnings per share. On average, sell-side analysts forecast that SoundHound AI will post -0.32 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In other news, SVP Majid Emami sold 38,730 shares of the company's stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares of the company's stock, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the completion of the sale, the chief operating officer owned 2,600,231 shares of the company's stock, valued at approximately $16,459,462.23. The trade was a 2.66% 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 288,758 shares of company stock valued at $1,828,598 in the last quarter. Company insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC lifted its position in shares of SoundHound AI by 38.1% in the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company's stock worth $855,000 after acquiring an additional 36,415 shares during the period. IFP Advisors Inc increased its position in shares of SoundHound AI by 10.7% during the second 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 period. Allworth Financial LP raised its stake in shares of SoundHound AI by 12.7% in the second quarter. Allworth Financial LP now owns 22,539 shares of the company's stock valued at $146,000 after purchasing an additional 2,537 shares in the last quarter. Waverly Advisors LLC lifted its position in SoundHound AI by 6.9% in the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company's stock worth $415,000 after purchasing an additional 4,138 shares during the period. Finally, Nykredit A S bought a new position in SoundHound AI in the second quarter worth $165,000. Institutional investors and hedge funds own 19.28% of the company's stock.

SoundHound AI News Roundup

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

• Positive Sentiment: OASYS Edge expands SoundHound’s addressable market. The company introduced an architecture that embeds LLM-powered, agentic voice AI directly into vehicles and smart devices. Manufacturers can deploy the same AI agent in cloud, edge or hybrid environments, with availability expected in late 2026. This could support broader adoption and lower deployment costs, although commercial revenue is not immediate. SoundHound AI Introduces OASYS Edge
• Positive Sentiment: Investors continue to focus on SoundHound as an AI growth stock. Recent coverage highlights its revenue growth, narrowing losses and potential to benefit from demand for embedded voice and agentic AI, providing a constructive long-term narrative. Cerebras vs. SoundHound comparison
• Neutral Sentiment: Heavy investor attention is increasing volatility. SoundHound is among the most-watched stocks on Zacks and is being compared with other AI companies as a potential 2026 investment. The attention may support trading interest but does not by itself change the company’s fundamentals. Is Trending Stock SoundHound AI a Buy Now?
• Negative Sentiment: Analyst actions are weighing on sentiment. Piper Sandler lowered its SoundHound price target to $6.00, and separate coverage linked a decline in the stock to an analyst downgrade. The reduced target signals limited near-term upside and reinforces concerns about valuation and continued losses. Piper Sandler Lowers SoundHound Price Target
• Negative Sentiment: Short-selling data suggests potential pressure but is inconsistent. One report places SOUN among stocks with short interest above one-third of the float, while another lists zero shares short, indicating a possible data discrepancy. If the higher figure is accurate, it could amplify volatility and downside risk, though it also creates squeeze potential. Squeeze Watch: Stocks With High Short Interest

About SoundHound AI

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.

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