Piper Sandler Lowers SoundHound AI (NASDAQ:SOUN) Price Target to $7.00

Key Points

• Piper Sandler lowered SoundHound AI’s price target from $8.00 to $7.00 while maintaining a “neutral” rating, implying roughly 2.13% downside from the prior close.
• Despite the cautious view, SoundHound shares rose 11.2% to $7.15. The stock remains highly volatile, with a beta of 2.64, a 52-week range of $5.65 to $22.17, and a market capitalization of approximately $3.1 billion.
• Analyst sentiment overall remains more positive, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $14.64. However, the company remains unprofitable, recently missing quarterly EPS estimates despite revenue of $44.2 million, up 51.7% year over year.

SoundHound AI (NASDAQ:SOUN - Get Free Report) had its price objective reduced by equities research analysts at Piper Sandler from $8.00 to $7.00 in a research note issued to investors on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Piper Sandler's target price would indicate a potential downside of 2.13% from the company's previous close.

A number of other research analysts have also recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of SoundHound AI in a report on Monday, June 15th. DA Davidson reiterated a "buy" rating and set a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, SoundHound AI has a consensus rating of "Moderate Buy" and an average price target of $14.64.

SoundHound AI Trading Up 11.2%

Shares of NASDAQ SOUN traded up $0.72 during trading hours on Thursday, reaching $7.15. The stock had a trading volume of 63,244,978 shares, compared to its average volume of 28,611,475. The business's fifty day moving average price is $6.84 and its two-hundred day moving average price is $7.63. The firm has a market cap of $3.10 billion, a price-to-earnings ratio of -15.27 and a beta of 2.64. SoundHound AI has a 52-week low of $5.65 and a 52-week high of $22.17.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its earnings results 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). SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. During the same quarter in the prior year, the company earned ($0.06) EPS. The firm's quarterly revenue was up 51.7% on a year-over-year basis. Equities research analysts anticipate that SoundHound AI will post -0.45 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Majid Emami sold 28,843 shares of the company'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 $215,168.78. Following the completion of the sale, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This represents a 5.75% decrease in their position. The transaction was disclosed in a document filed 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, CEO Keyvan Mohajer sold 126,540 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the transaction, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. This represents a 6.10% decrease in their position. 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. Over the last ninety days, insiders sold 268,022 shares of company stock worth $1,999,444. Corporate insiders own 8.84% of the company's stock.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. EP Wealth Advisors LLC increased its holdings in SoundHound AI by 5.3% in the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock valued at $151,000 after buying an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its stake in SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock valued at $513,000 after buying an additional 830 shares in the last quarter. Clear Creek Financial Management LLC increased its holdings in shares of SoundHound AI by 1.6% in the fourth quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company's stock valued at $579,000 after buying an additional 941 shares in the last quarter. Parallel Advisors LLC boosted its holdings in shares of SoundHound AI by 42.8% in the third quarter. Parallel Advisors LLC now owns 3,204 shares of the company's stock worth $52,000 after buying an additional 960 shares during the period. Finally, Allspring Global Investments Holdings LLC boosted its position in SoundHound AI by 5.5% during the 4th quarter. Allspring Global Investments Holdings LLC now owns 18,590 shares of the company's stock worth $197,000 after acquiring an additional 964 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Revenue and guidance beat expectations: Q2 revenue reached a record $61.9 million, up 45% year over year and above estimates near $52–$53 million. SoundHound also raised its FY 2026 revenue outlook to $230 million–$260 million, implying a midpoint above the current consensus estimate of $232.5 million. SoundHound AI Reports Record Q2 and Raises Full-Year Outlook
• Positive Sentiment: Profitability metrics improved: Gross profit increased 67.6% to $27.9 million, while the reported $0.10-per-share loss was narrower than the consensus loss of $0.13. The results reinforced the company’s growth narrative, although SoundHound remains unprofitable. SoundHound AI Reports Bullish Q2
• Positive Sentiment: Enterprise demand remains a catalyst: Management highlighted adoption of its OASYS platform and agentic AI offerings, supporting investor expectations for sustained growth. The expanded deployment of SoundHound’s Emily voice agent at MUSC Health also provides a commercial validation point.
• Positive Sentiment: Speculative bullish positioning increased: Investors purchased 120,933 call options, 51% above typical call volume. Heavy short interest—reported at roughly 42%—could amplify upward moves if bullish momentum continues, though it also raises volatility risk.
• Neutral Sentiment: Analyst sentiment is supportive but not newly decisive: Coverage continues to describe SoundHound as attractive, with previously published price targets ranging from $9 to $20. No significant fresh rating change was identified in the reports.
• Negative Sentiment: Losses and cash burn remain concerns: SoundHound posted a substantial operating loss of $43.3 million and used $33.7 million in operating cash during the quarter. Its negative margins mean the stock’s valuation remains highly dependent on future growth and eventual profitability.
• Negative Sentiment: Insider selling may weigh on confidence: Reported insider transactions over the past six months consisted of sales rather than purchases, including sales by senior executives. This is a secondary concern compared with the earnings beat but may reinforce volatility.

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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