SoundHound AI, Inc. (NASDAQ:SOUN) Stock Has Average Target Price of $12.75 According to Brokerages

Key Points

• Analyst consensus is moderately bullish: Seven brokerages rate SoundHound AI a “Moderate Buy,” with three buys, one strong buy, two holds and one sell. The average 12-month price target is $12.75.
• Revenue growth is strong but profitability remains a concern: Quarterly revenue rose 45% year over year to $61.9 million, exceeding expectations, and EPS also beat estimates; however, the company posted a negative net margin and analysts expect a full-year loss.
• The stock remains volatile and under pressure: Shares opened at $5.72, near their 12-month low of $5.65 and below both their 50-day and 200-day moving averages. Insiders sold shares primarily to cover tax obligations, while institutional investors own 19.28% of the company.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) have earned an average rating of "Moderate Buy" from the seven brokerages that are currently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation, two have assigned a hold recommendation, three have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $12.75.

SOUN has been the topic of a number of research reports. Wall Street Zen lowered shares of SoundHound AI from a "sell" rating to a "strong sell" rating in a research report on Saturday, September 26th. 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 report on Thursday, August 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Friday, September 11th. Finally, Piper Sandler decreased their price objective on SoundHound AI from $7.00 to $6.00 and set a "neutral" rating on the stock in a research report on Tuesday, September 22nd.

Insider Transactions at SoundHound AI

In other news, SVP Majid Emami sold 38,730 shares of SoundHound AI stock in a transaction that occurred on 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 sale, the senior vice president owned 834,253 shares in the company, valued at $5,280,821.49. The trade was a 4.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction that occurred 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 sale, the insider owned 1,105,555 shares of the company's stock, valued at approximately $6,998,163.15. This represents a 3.38% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 288,758 shares of company stock valued at $1,828,598 in the last three months. Company insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently bought and sold shares of SOUN. Swiss National Bank raised its position in shares of SoundHound AI by 3.7% during the 1st quarter. Swiss National Bank now owns 767,100 shares of the company's stock valued at $5,270,000 after acquiring an additional 27,300 shares during the last quarter. California State Teachers Retirement System boosted its position in shares of SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after purchasing an additional 87,998 shares during the last quarter. AXQ Capital LP boosted its position in shares of SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company's stock worth $1,648,000 after purchasing an additional 203,345 shares during the last quarter. SG Americas Securities LLC acquired a new stake in shares of SoundHound AI during the first quarter worth $1,606,000. Finally, Virtu Financial LLC grew its stake in shares of SoundHound AI by 43.9% during the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company's stock worth $2,191,000 after purchasing an additional 67,088 shares during the period. 19.28% of the stock is owned by institutional investors.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound is expanding its OASYS platform across vehicles, televisions and other IoT devices, with the goal of turning connected endpoints into AI-powered transaction channels. Broader distribution could increase recurring commercial opportunities if adoption accelerates. SoundHound Expands IoT Footprint: Can Agentic AI Reach More Devices?
• Positive Sentiment: The rollout of SoundHound’s voice and generative AI technology in the Kia Sorento in India, together with its OASYS Edge embedded architecture, supports the company’s strategy of bringing privacy-focused, on-device AI agents to high-volume global markets. Kia Sorento Rollout and OASYS Edge Debut
• Positive Sentiment: Recent coverage highlights improving enterprise voice-AI momentum, record quarterly revenue growth and a higher full-year revenue outlook. The company’s latest reported quarter also showed revenue growth and an earnings-per-share result ahead of consensus, although profitability remains distant.
• Neutral Sentiment: SoundHound is receiving elevated investor attention on Zacks, making SOUN a trending stock; however, the coverage emphasizes that attention alone does not establish a fundamental catalyst. What to Know Beyond Why SoundHound AI Is a Trending Stock
• Negative Sentiment: Analysts and commentators describe SOUN as a high-risk, high-reward investment whose recovery may take longer than expected. The stock is already down about 41% in 2026 and trades near its 12-month low, reflecting skepticism about execution and valuation. SoundHound AI Stock Outlook
• Negative Sentiment: SoundHound continues to report losses, and comparisons with BigBear.ai and Rigetti Computing reinforce concerns about unproven profitability and the need for investors to remain patient. Rigetti Computing vs. SoundHound AI

SoundHound AI Stock Down 2.7%

SoundHound AI stock opened at $5.72 on Wednesday. The stock has a 50-day simple moving average of $6.58 and a 200 day simple moving average of $7.04. SoundHound AI has a 12-month low of $5.65 and a 12-month high of $22.17. The stock has a market capitalization of $2.54 billion, a price-to-earnings ratio of -15.05 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping analysts' consensus estimates of ($0.13) by $0.11. The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company's revenue was up 45.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.19) EPS. As a group, sell-side analysts anticipate that SoundHound AI will post -0.32 EPS for the current year.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company's offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.