Insider Selling: SoundHound AI (NASDAQ:SOUN) CTO Sells 18,802 Shares of Stock

Key Points

• SoundHound AI CTO Timothy Stonehocker sold 18,802 shares on June 15 at an average price of $7.46, totaling about $140,263. The sale reduced his stake by 3.61%, and the company said it was done to cover tax withholding tied to vested equity awards.
• The company’s latest earnings showed mixed results: SoundHound reported a smaller-than-expected loss of $0.06 per share and revenue of $44.2 million, which beat estimates, while revenue still rose 51.7% year over year. However, profitability remains weak with a negative net margin and negative return on equity.
• Wall Street sentiment remains cautiously bullish, with analysts holding a consensus “Moderate Buy” rating and an average price target of $14.93. Several funds also increased their stakes in the stock, even as recent insider sales may weigh on near-term sentiment.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) CTO Timothy Stonehocker sold 18,802 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Timothy Stonehocker also recently made the following trade(s):

• On Friday, March 20th, Timothy Stonehocker sold 23,087 shares of SoundHound AI stock. The stock was sold at an average price of $6.79, for a total value of $156,760.73.

SoundHound AI Price Performance

SOUN traded down $0.07 during midday trading on Wednesday, reaching $6.96. 19,183,094 shares of the company's stock traded hands, compared to its average volume of 25,995,096. SoundHound AI, Inc. has a 52 week low of $5.83 and a 52 week high of $22.17. The firm has a fifty day moving average of $7.94 and a two-hundred day moving average of $8.81. The stock has a market capitalization of $3.01 billion, a price-to-earnings ratio of -14.81 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.SoundHound AI's quarterly revenue was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.06) earnings per share. Sell-side analysts forecast that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in SOUN. Royal Bank of Canada raised its holdings in SoundHound AI by 71.3% in the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock worth $1,301,000 after acquiring an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC raised its holdings in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock worth $119,000 after acquiring an additional 1,201 shares during the last quarter. NewEdge Advisors LLC raised its holdings in SoundHound AI by 12.9% in the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock worth $333,000 after acquiring an additional 4,692 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after acquiring an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in SoundHound AI by 10.1% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock worth $5,620,000 after acquiring an additional 63,398 shares during the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

SOUN has been the topic of a number of recent analyst reports. LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Piper Sandler reiterated a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday. Finally, DA Davidson reiterated a "buy" rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $14.93.

Key SoundHound AI News

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

• Positive Sentiment: Analysts and market commentary continue to point to SoundHound’s growth potential in conversational AI and enterprise voice solutions, with some bullish views centered on a longer-term revenue ramp.
• Neutral Sentiment: Several insider sales were disclosed, but the company stated they were for tax withholding related to vesting equity awards rather than open-market selling for discretionary reasons.
• Negative Sentiment: Multiple top executives sold shares in the same filing window, which can add pressure to sentiment and reinforce investor concern about the stock’s near-term valuation.
• Negative Sentiment: Recent coverage also emphasized that SoundHound AI trades at a premium, suggesting some investors may be questioning whether the current price fully reflects near-term execution risk.

About SoundHound AI

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.