SoundHound AI (NASDAQ:SOUN) Insider Sells 38,730 Shares

Key Points

• Insider James Hom sold 38,730 SoundHound AI shares at an average price of $6.33, generating approximately $245,161. The sale reduced his ownership by 3.38% and was made to cover tax withholding on vested equity awards.
• SoundHound shares traded near $6.00, well below their 52-week high of $22.17, while the company remains unprofitable with a negative P/E ratio and negative net margin.
• The company beat quarterly expectations, reporting revenue of $61.9 million—up 45% year over year—and an EPS loss of $0.02 versus the expected $0.13 loss. Analysts maintain a consensus “Moderate Buy” rating with a $13.00 price target.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) insider James Hom sold 38,730 shares of the company's 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 transaction, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. The trade was a 3.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

SoundHound AI Stock Performance

SOUN traded up $0.07 during mid-day trading on Thursday, reaching $6.00. The stock had a trading volume of 16,598,502 shares, compared to its average volume of 28,301,928. The stock has a market capitalization of $2.66 billion, a P/E ratio of -15.79 and a beta of 2.66. SoundHound AI, Inc. has a 52 week low of $5.65 and a 52 week high of $22.17. The firm's fifty day simple moving average is $6.70 and its two-hundred day simple moving average is $7.24.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm had revenue of $61.90 million during the quarter, compared to analysts' expectations of $52.38 million. During the same period in the previous year, the business posted ($0.19) EPS. The company's quarterly revenue was up 45.0% compared to the same quarter last year. As a group, analysts expect that SoundHound AI, Inc. will post -0.33 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the business. NewEdge Advisors LLC increased its holdings in SoundHound AI by 38.1% in the second quarter. NewEdge Advisors LLC now owns 132,072 shares of the company's stock worth $855,000 after purchasing an additional 36,415 shares in the last quarter. IFP Advisors Inc boosted its stake in SoundHound AI by 10.7% during the second quarter. IFP Advisors Inc now owns 32,748 shares of the company's stock worth $212,000 after acquiring an additional 3,163 shares in the last quarter. Allworth Financial LP boosted its stake in SoundHound AI by 12.7% during the second quarter. Allworth Financial LP now owns 22,539 shares of the company's stock worth $146,000 after acquiring an additional 2,537 shares in the last quarter. Waverly Advisors LLC grew its holdings in SoundHound AI by 6.9% in the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company's stock worth $415,000 after purchasing an additional 4,138 shares during the period. Finally, Nykredit A S bought a new stake in SoundHound AI in the second quarter valued at $165,000. 19.28% of the stock is owned by institutional investors.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: Analysts cited by American Banking News assign SoundHound an average price target of $13.00, substantially above recent trading levels. This suggests potential upside if the company delivers on its growth plans. SoundHound AI Receives $13.00 Average Price Target from Analysts
• Positive Sentiment: SoundHound’s Asia business has extended its deal momentum to five consecutive quarters, with additional wins in China and India and continued expansion of its OASYS automotive platform. The developments support the company’s international growth and automotive AI opportunity. SoundHound Asia Growth Extends to 5 Quarters
• Neutral Sentiment: A comparison with NVIDIA highlights SoundHound’s rapid growth and narrowing losses, but also its much smaller scale, narrower voice-AI focus and lack of profitability. Investors may view the company as a higher-risk growth alternative within the AI sector. SoundHound vs. NVIDIA After Earnings
• Negative Sentiment: CEO Keyvan Mohajer, COO Michael Zagorsek, SVP Majid Emami and insider James Hom collectively sold about 285,863 shares at an average price of $6.33. The filings state the sales were made to cover tax withholding tied to vested equity awards, which reduces their bearish significance, although the volume may still weigh on sentiment. SoundHound Insider Sale Filing
• Negative Sentiment: SoundHound has recently declined alongside other speculative software names, including UiPath and C3.ai, despite broader market resilience. The sector-wide selling reflects investor caution toward unprofitable, high-volatility AI stocks and remains a headwind for SOUN. SoundHound AI Drops as Speculative Software Selling Intensifies

Wall Street Analyst Weigh In

SOUN has been the topic of a number of recent research reports. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a research report on Friday, September 11th. DA Davidson lowered their price objective on SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Wall Street Zen upgraded SoundHound AI from a "strong sell" rating to a "sell" rating in a research note on Sunday. Finally, Piper Sandler reduced their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a research report on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, SoundHound AI presently has a consensus rating of "Moderate Buy" and a consensus price target of $13.00.

SoundHound AI Company Profile

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company's offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.

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