SoundHound AI, Inc. (NASDAQ:SOUN) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts assigned a consensus rating of "Moderate Buy" from 10 firms with an average 1‑year target of $14.93 (ratings breakdown: 1 sell, 3 hold, 5 buy, 1 strong buy).
• Significant insider activity and a leadership change — CFO Nitesh Sharan and CEO Keyvan Mohajer sold shares in December and Sharan is departing for Quantinuum, with co‑founder James Hom named interim CFO; insiders sold 460,922 shares (~$5.2M) in the last 90 days and the stock dropped roughly 6% on the CFO transition.
• Operationally SoundHound beat revenue expectations with $55.06M (up 59.4% YoY) but remains unprofitable (EPS -$0.02), and landed a notable commercial win with Peet's Coffee to deploy its Employee Assist voice agent across U.S. stores.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the ten ratings firms that are currently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, three have issued a hold recommendation, five have issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year target price among analysts that have covered the stock in the last year is $14.9286.

Several brokerages have commented on SOUN. DA Davidson set a $14.00 target price on SoundHound AI in a research note on Thursday, January 8th. HC Wainwright decreased their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a research note on Monday, March 2nd. Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a report on Monday, February 9th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Finally, Piper Sandler reiterated a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th.

Insider Activity

In other news, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the completion of the sale, the chief financial officer directly owned 1,705,148 shares in the company, valued at $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Keyvan Mohajer sold 144,326 shares of the business's stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the transaction, the chief executive officer directly owned 2,198,287 shares of the company's stock, valued at $24,796,677.36. The trade was a 6.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 460,922 shares of company stock worth $5,199,073. 9.17% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently added to or reduced their stakes in SOUN. Northwestern Mutual Wealth Management Co. grew its holdings 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 worth $25,000 after acquiring an additional 1,060 shares during the period. Dogwood Wealth Management LLC lifted its holdings in 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 acquiring an additional 1,544 shares during the period. Danske Bank A S bought a new position in SoundHound AI in the third quarter valued at about $26,000. Advisors Asset Management Inc. boosted its position in SoundHound AI by 68.4% in the second quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company's stock worth $27,000 after purchasing an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management purchased a new position in SoundHound AI in the fourth quarter worth about $27,000. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: An analyst told media the shares could potentially double despite the CFO news, offering a bullish counterpoint that could attract speculative buying if confidence in execution returns. Analyst says SoundHound stock can double as CFO announces departure
• Positive Sentiment: SoundHound announced a commercial win with Peet’s Coffee to deploy its Employee Assist voice agent across the U.S. store footprint — a tangible enterprise customer and validation of recurring revenue opportunities. Peet's Coffee Partners with SoundHound AI
• Positive Sentiment: Investor commentary outlets continued to list SOUN among under-the-radar AI names with multibagger potential, which can support longer-term interest from growth-focused investors. Prediction: These 3 Under-the-Radar Artificial Intelligence (AI) Stocks Could Be Multibaggers by End of 2026
• Neutral Sentiment: The company announced an interim finance leadership plan: co‑founder and former CFO James Hom will step in as interim CFO, which reduces near-term uncertainty but leaves longer-term succession questions open. SoundHound AI Announces CFO Transition
• Neutral Sentiment: Nitesh Sharan’s move to Quantinuum is confirmed — a routine executive move that explains the departure but doesn’t directly alter SoundHound’s product roadmap. Nitesh Sharan Joins Quantinuum as Chief Financial Officer
• Negative Sentiment: Shares sold off intraday amid the CFO transition and broader Voice-AI competition narrative (including Nvidia moves), with coverage noting a roughly 6% drop and break below a key $7 level — technical weakness that can trigger further selling. SoundHound AI Sinks 6%: What NVIDIA's Voice AI Bet Says About The Broader Market
• Negative Sentiment: Multiple outlets attribute today’s selling pressure directly to the CFO departure, reflecting investor sensitivity to leadership turnover at a growth-stage AI company that is still not profitable. Why Is SoundHound AI Stock Tumbling Today?

SoundHound AI Stock Performance

Shares of SoundHound AI stock opened at $6.55 on Friday. The company has a 50-day simple moving average of $8.67 and a two-hundred day simple moving average of $12.32. The stock has a market capitalization of $2.75 billion, a PE ratio of -130.97 and a beta of 2.65. SoundHound AI has a 52-week low of $6.47 and a 52-week high of $22.17.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting analysts' consensus estimates of ($0.02). The firm had revenue of $55.06 million for the quarter, compared to analysts' expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business's revenue for the quarter was up 59.4% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.05) earnings per share. As a group, equities research analysts forecast that SoundHound AI will post -0.38 EPS for the current fiscal year.

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.