Bank of America Corp DE Sells 731,593 Shares of SoundHound AI, Inc. $SOUN

Key Points

• Bank of America reduced its SoundHound AI stake by 11.1%: The fund sold 731,593 shares during the first quarter but still held 5.88 million shares, worth approximately $40.4 million.
• Institutional sentiment was mixed: Vanguard, UBS and other major investors increased their positions, while institutional investors collectively owned 19.28% of SoundHound’s stock.
• SoundHound exceeded quarterly expectations but remains unprofitable: The company reported revenue of $61.9 million, up 45% year over year, and loss per share of $0.02 versus the $0.13 expected loss. Analysts maintain a “Moderate Buy” consensus with a $13.60 average price target, though losses are expected to continue.

Bank of America Corp DE reduced its position in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 11.1% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,882,772 shares of the company's stock after selling 731,593 shares during the period. Bank of America Corp DE owned approximately 1.39% of SoundHound AI worth $40,415,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of SOUN. Vanguard Group Inc. raised its stake in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the period. Rakuten Securities Inc. boosted its position in shares of SoundHound AI by 877.9% in the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock worth $3,326,000 after purchasing an additional 299,492 shares during the period. UBS Group AG increased its stake in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. California State Teachers Retirement System increased its stake in shares of SoundHound AI by 25.0% in the first 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 in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of SoundHound AI by 140.5% during the 4th 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 during the period. Institutional investors own 19.28% of the company's stock.

SoundHound AI Trading Up 1.1%

Shares of NASDAQ SOUN opened at $7.48 on Friday. SoundHound AI, Inc. has a 12-month low of $5.65 and a 12-month high of $22.17. The firm's 50-day moving average price is $6.70 and its 200-day moving average price is $7.49. The stock has a market capitalization of $3.24 billion, a price-to-earnings ratio of -19.68 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The company had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. During the same quarter in the prior year, the firm posted ($0.19) EPS. SoundHound AI's quarterly revenue was up 45.0% compared to the same quarter last year. On average, equities analysts predict that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Wall Street Analyst Weigh In

SOUN has been the topic of a number of recent analyst reports. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday, August 6th. Piper Sandler cut their target price on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating for the company in a research report on Thursday, August 6th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $13.60.

Key SoundHound AI News

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

• Positive Sentiment: Record results and higher guidance strengthen the growth case. Recent coverage highlights SoundHound’s record second-quarter performance, a raised 2026 revenue outlook and robust revenue growth. Analysts have been lifting revenue and earnings expectations, suggesting improving confidence in demand for the company’s voice and agentic AI products. SoundHound's Q2 Results Fuel Estimate Hikes
• Positive Sentiment: OASYS could expand SoundHound’s addressable market. The newly launched OASYS platform allows businesses to create voice-enabled AI agents, potentially accelerating enterprise adoption and supporting the company’s longer-term revenue outlook. Coverage also points to SoundHound’s revenue having increased roughly tenfold over four years. Should You Buy SoundHound AI Stock After Its 67% Plunge?
• Positive Sentiment: LivePerson transaction gains shareholder-support momentum. Institutional Shareholder Services recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound ahead of the August 20 special meeting. ISS joins Glass Lewis in supporting the deal, reducing a key execution risk and reinforcing expectations for a broader conversational-AI platform. ISS Recommends LivePerson Stockholders Vote For Transaction
• Neutral Sentiment: Analysts see potential upside, but price targets are not reliable on their own. Consensus coverage implies substantial upside from recent trading levels, while positive earnings-estimate revisions may provide a near-term catalyst. However, the articles caution that consensus price targets have limited predictive value. Wall Street Analysts Believe SoundHound AI Could Rally
• Negative Sentiment: Profitability remains distant. Northland Securities still expects SoundHound to report losses through 2027. It raised its FY2026 loss estimate to $0.38 per share from $0.41 and its FY2027 loss estimate to $0.32 from $0.35, but reduced its Q4 2026 forecast to a $0.11 loss per share. Cash burn, negative margins and a premium valuation could limit gains if growth slows. SoundHound AI Analyst Estimates

Insiders Place Their Bets

In related news, SVP Majid Emami sold 28,843 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the senior vice president directly owned 472,983 shares of the company's stock, valued at $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available 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 64,994 shares of the company's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $484,855.24. Following the completion of the sale, the chief operating officer directly owned 1,669,497 shares of the company's stock, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. 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. In the last ninety days, insiders sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is owned by company insiders.

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.

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.

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