Calamos Advisors LLC Makes New $4.20 Million Investment in SoundHound AI, Inc. $SOUN

Key Points

• Calamos Advisors initiated a $4.2 million stake in SoundHound AI, acquiring 696,783 shares, or about 0.16% of the company.
• SoundHound reported Q3 revenue of $62.4 million, up 48.5% year over year, and a smaller-than-expected loss per share; however, declining gross margin and a wider adjusted EBITDA loss highlighted profitability concerns.
• Analyst views remain mixed: the consensus rating is Hold with a $9.50 price target, while Cantor Fitzgerald cut its target from $15 to $10. Recent insider share sales were reported as covering tax withholding on vested equity awards.

Calamos Advisors LLC acquired a new stake in SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) in the third quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 696,783 shares of the company's stock, valued at approximately $4,195,000. Calamos Advisors LLC owned approximately 0.16% of SoundHound AI as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in SOUN. Swiss National Bank grew its stake in SoundHound AI by 3.7% in the first 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 period. California State Teachers Retirement System raised its position in shares of SoundHound AI by 25.0% during 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 during the period. AXQ Capital LP raised its position in shares of SoundHound AI by 395.6% during the second 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 period. Themes Management Co LLC raised its position in shares of SoundHound AI by 86.5% during the first quarter. Themes Management Co LLC now owns 191,444 shares of the company's stock worth $1,315,000 after purchasing an additional 88,820 shares during the period. Finally, Corient Private Wealth LP lifted its holdings in shares of SoundHound AI by 777.2% during the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company's stock valued at $1,144,000 after purchasing an additional 156,612 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company's stock.

Insider Transactions at SoundHound AI

In related news, 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 value 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 trade represents a 3.38% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 that occurred on Tuesday, September 15th. The shares were 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 owned 3,684,947 shares in the company, valued at $23,325,714.51. The trade was a 3.59% 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 a total of 288,758 shares of company stock worth $1,828,598 in the last 90 days. 8.84% of the stock is owned by corporate insiders.

SoundHound AI News Roundup

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

• Positive Sentiment: Management is targeting sustained adjusted EBITDA profitability in the second half of 2027, supported by a planned $120 million in cost savings and the integration of LivePerson. SOUN Q3 Earnings Call Highlights 2027 Profitability Target
• Positive Sentiment: Commercial momentum includes an expanded Ultraviolette partnership to bring voice AI to its electric motorcycle lineup, alongside an LG deal covering about 20 million U.S. smart TVs. SoundHound AI and Ultraviolette Announce Major Expansion
• Neutral Sentiment: Q3 revenue reached a record $62.4 million, up 48.5% year over year, while the reported loss per share was narrower than some estimates. However, revenue slightly missed other published estimates, making the quarter’s results mixed. SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift
• Neutral Sentiment: Cantor Fitzgerald lowered its price target to $10 from $15 but maintained an Overweight rating, reflecting continued analyst optimism alongside a more cautious valuation. Cantor Fitzgerald’s $10 Target
• Negative Sentiment: Investors focused on deteriorating profitability: non-GAAP gross margin fell to 50.3% from 59.3%, and the adjusted EBITDA loss widened. The move away from upfront licensing toward hosted, recurring contracts may also weigh on near-term recognized revenue. SoundHound Stock Slips Despite Beat as Adjusted Losses Widen
• Negative Sentiment: Persistent net losses, cash burn, and execution risks around the LivePerson acquisition remain concerns. Those issues have contributed to a steep recent sell-off despite strong year-over-year sales growth. SOUN Plunges 22.8% in the Past Month

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on SOUN shares. Yorkville Ives began coverage on SoundHound AI in a research report on Monday, October 5th. They issued an "in-line" rating and a $6.50 price objective for the company. Weiss Ratings raised SoundHound AI from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, October 15th. Cantor Fitzgerald dropped their target price on shares of SoundHound AI from $15.00 to $10.00 and set an "overweight" rating on the stock in a report on Friday. Oppenheimer reaffirmed a "market perform" rating on shares of SoundHound AI in a research note on Friday. Finally, Piper Sandler cut their price target on shares of SoundHound AI from $7.00 to $6.00 and set a "neutral" rating on the stock in a research note on Tuesday, September 22nd. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $9.50.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN opened at $4.11 on Monday. The company has a fifty day moving average price of $5.50 and a 200 day moving average price of $7.03. The firm has a market cap of $1.83 billion, a PE ratio of -19.57 and a beta of 2.90. SoundHound AI, Inc. has a 1-year low of $3.88 and a 1-year high of $14.98.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.07. The firm had revenue of $62.43 million for the quarter, compared to the consensus estimate of $61.71 million. SoundHound AI had a negative return on equity of 15.72% and a negative net margin of 33.17%. The company's revenue for the quarter was up 48.5% on a year-over-year basis. During the same quarter last year, the business posted ($0.03) EPS. Equities research analysts forecast that SoundHound AI, Inc. will post -0.39 EPS for the current year.

SoundHound AI Profile

SoundHound AI develops voice and conversational artificial intelligence technology for businesses. Its platform is designed to let people interact with products and services using natural speech, without relying solely on preset commands or menus.

The company offers voice assistants and conversational tools for industries including automotive, restaurants, and consumer electronics. Its products include Houndify, a platform for building voice-enabled applications, and SoundHound Chat AI, which combines conversational voice technology with generative AI.

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