California State Teachers Retirement System Has $3.02 Million Stock Position in SoundHound AI, Inc. $SOUN

Key Points

• CalSTRS increased its SoundHound AI stake by 25% in the first quarter, purchasing 87,998 additional shares and holding 440,023 shares worth approximately $3.02 million.
• SoundHound reported strong quarterly momentum, with revenue up 45% year over year to $61.9 million and an adjusted loss that beat expectations; management also raised its full-year revenue outlook, citing demand for its OASYS platform.
• Investor sentiment remains mixed: analysts’ average rating is “Moderate Buy,” but price targets were recently reduced, while ongoing losses, cash burn, potential dilution and elevated valuation present risks.

California State Teachers Retirement System increased its holdings in shares of SoundHound AI, Inc. (NASDAQ:SOUN - Free Report) by 25.0% in the first quarter, according to its most recent disclosure with the SEC. The firm owned 440,023 shares of the company's stock after purchasing an additional 87,998 shares during the period. California State Teachers Retirement System owned 0.10% of SoundHound AI worth $3,023,000 as of its most recent filing with the SEC.

A number of other institutional investors have also recently bought and sold shares of the business. Hollencrest Capital Management raised its stake in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after buying an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC lifted its position in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after buying an additional 1,544 shares during the last quarter. Danske Bank A S bought a new position in shares of SoundHound AI during the 3rd quarter worth approximately $26,000. Finally, SHP Wealth Management bought a new position in shares of SoundHound AI during the 4th quarter worth approximately $27,000. Institutional investors and hedge funds own 19.28% of the company's stock.

Key SoundHound AI News

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

• Positive Sentiment: Record revenue and earnings beat: Second-quarter revenue rose 45% year over year to $61.9 million, well above the approximately $42.6 million consensus estimate. The adjusted loss of $0.02 per share also beat expectations, while profitability metrics and margins improved. SoundHound Q2 Earnings Beat on OASYS Demand, Revenues Top, Stock Up
• Positive Sentiment: Higher full-year outlook: SoundHound raised its 2026 revenue floor, citing OASYS-driven enterprise adoption, faster deal conversions and broader customer demand. Management also emphasized continued margin improvement despite ongoing investment. SOUN Raises 2026 Revenue Outlook After OASYS Drives Record Q2 Sales
• Positive Sentiment: Potential strategic catalyst: Proxy adviser Glass Lewis recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound at the August 20 special meeting, supporting the planned expansion of SoundHound’s conversational-AI capabilities. Glass Lewis Recommends LivePerson Stockholders Vote For SoundHound AI Transaction
• Positive Sentiment: Trading momentum: Heavy call-option activity and high short interest may be amplifying the post-earnings move as bullish traders participate and short sellers cover positions.
• Neutral Sentiment: Analyst support is mixed: DA Davidson maintained a Buy rating while lowering its price target from $12 to $10. Piper Sandler cut its target from $8 to $7 and retained a Neutral rating.
• Negative Sentiment: Valuation and financial risks: Analysts note that SOUN remains expensive relative to sales, with projected 2026 growth needing to justify the premium. The company continues to report losses and cash burn, while potential dilution and execution risks could limit further upside. SOUN Dips 16.9% in 3 Months

Analyst Ratings Changes

A number of research firms recently weighed in on SOUN. Piper Sandler dropped their price target on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research note on Thursday. DA Davidson cut their price target on SoundHound AI from $12.00 to $10.00 and set a "buy" rating for the company in a report on Thursday. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $14.00.

Insider Buying and Selling at SoundHound AI

In related news, CTO Timothy Stonehocker sold 18,802 shares of SoundHound AI 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 $140,262.92. Following the completion of the sale, the chief technology officer directly owned 502,290 shares of the company's stock, valued at approximately $3,747,083.40. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, 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 64,994 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the sale, the chief operating officer owned 1,669,497 shares of the company's stock, valued at $12,454,447.62. This trade represents a 3.75% decrease in their ownership of the stock. 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 sold a total of 268,022 shares of company stock worth $1,999,444 in the last 90 days. Company insiders own 8.84% of the company's stock.

SoundHound AI Price Performance

Shares of SOUN stock opened at $8.02 on Monday. The firm has a 50 day moving average price of $6.79 and a two-hundred day moving average price of $7.58. The company has a market capitalization of $3.47 billion, a PE ratio of -21.10 and a beta of 2.64. SoundHound AI, Inc. has a 12-month low of $5.65 and a 12-month high of $22.17.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported ($0.10) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.13) by $0.03. 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 during the quarter, compared to analysts' expectations of $52.38 million. During the same quarter in the previous year, the company posted ($0.19) earnings per share. The business's revenue was up 45.0% on a year-over-year basis. As a group, research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current year.

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.

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