SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.2% on Insider Selling

Key Points

• SoundHound AI shares fell 1.2% to $5.93 after insiders sold a combined approximately 285,863 shares at $6.33 each. The sales were disclosed as transactions to cover tax withholding tied to vested equity awards.
• Recent quarterly results exceeded expectations, with revenue rising 45% year over year to $61.9 million and a smaller-than-expected loss of $0.02 per share. However, the company remains unprofitable, with analysts forecasting a full-year loss.
• Analyst sentiment remains mixed: SoundHound has a consensus “Moderate Buy” rating and a $13 average price target, though some firms have reduced their targets and the stock trades below its 50-day and 200-day moving averages.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) dropped 1.2% on Friday after an insider sold shares in the company. The stock traded as low as $5.83 and last traded at $5.93. Approximately 19,670,375 shares changed hands during mid-day trading, a decline of 30% from the average session volume of 28,252,666 shares. The stock had previously closed at $6.00.

Specifically, CEO Keyvan Mohajer sold 137,290 shares of the stock in a transaction dated 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 approximately $23,325,714.51. This trade represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the firm's stock in a transaction 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 completion of the transaction, the senior vice president directly owned 834,253 shares of the company's stock, valued at approximately $5,280,821.49. This trade represents a 4.44% 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. In related news, insider James Hom sold 38,730 shares of the stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the transaction, the insider owned 1,105,555 shares of the company's stock, valued at $6,998,163.15. This represents a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Wall Street Analyst Weigh In

SOUN has been the topic of a number of recent research reports. Piper Sandler decreased their price objective on SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday, August 6th. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Wall Street Zen raised SoundHound AI from a "strong sell" rating to a "sell" rating in a research note on Sunday, September 13th. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of SoundHound AI in a research report on Friday, September 11th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $13.00.

SoundHound AI News Summary

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

• Positive Sentiment: Analysts cited by American Banking News maintain an average $13.00 price target, well above recent trading levels. The target implies significant potential upside if SoundHound executes on its growth strategy. SoundHound AI Receives $13.00 Average Price Target from Analysts
• Positive Sentiment: SoundHound’s completed acquisition of LivePerson and appointment of former LivePerson executive John Collins as CFO could strengthen financial integration and support management’s push toward sustainable profitability. The developments follow strong second-quarter growth and raised full-year guidance. Will SoundHound AI's LivePerson Deal and New CFO Shift Its Profitability Narrative?
• Neutral Sentiment: A Zacks comparison with NVIDIA emphasizes SoundHound’s rapid revenue growth and narrowing losses, but also its smaller scale, narrower voice-AI focus and continued lack of profitability. Investors may view SOUN as a higher-risk, higher-growth AI investment. SoundHound vs. NVIDIA After Earnings
• Negative Sentiment: CEO Keyvan Mohajer, COO Michael Zagorsek, SVP Majid Emami and insider James Hom sold a combined approximately 285,863 shares at an average price of $6.33. The filings say the transactions covered tax withholding obligations from vested equity awards, reducing their bearish significance, but the sales may still weigh on sentiment. SoundHound AI Insider Selling
• Negative Sentiment: SoundHound remains unprofitable, with analysts expecting a full-year loss, while its shares trade below both the 50-day and 200-day moving averages. That technical weakness and ongoing concerns about valuation and the path to profitability are limiting enthusiasm despite strong revenue growth.

SoundHound AI Trading Down 1.2%

The company has a 50 day simple moving average of $6.69 and a 200-day simple moving average of $7.22. The stock has a market cap of $2.63 billion, a price-to-earnings ratio of -15.60 and a beta of 2.66.

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

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Prospera Financial Services Inc increased its stake in shares of SoundHound AI by 5.9% in the fourth quarter. Prospera Financial Services Inc now owns 30,690 shares of the company's stock valued at $306,000 after buying an additional 1,699 shares during the period. Hilltop Holdings Inc. boosted its position in SoundHound AI by 3.5% during the 1st quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company's stock worth $353,000 after buying an additional 1,753 shares during the period. Sterling Investment Counsel LLC grew its holdings in SoundHound AI by 10.5% during the 1st quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company's stock worth $157,000 after acquiring an additional 2,173 shares during the last quarter. Empowered Funds LLC grew its holdings in SoundHound AI by 19.6% during the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after acquiring an additional 2,277 shares during the last quarter. Finally, Hollencrest Capital Management increased its position in SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after acquiring an additional 2,400 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

About SoundHound AI

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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