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

Key Points

• SoundHound AI has a Moderate Buy consensus from 10 analysts, with an average 12-month price target of about $14.93. Recent analyst actions were mixed, including upgrades and target cuts, but sentiment remains generally positive.
• The company’s latest quarter showed strong revenue growth: revenue rose 51.7% year over year to $44.2 million and beat expectations, even though EPS missed estimates by $0.01. Management also pointed to a large long-term revenue opportunity, including guidance tied to the planned LivePerson acquisition.
• Despite operational momentum, SoundHound continues to face profitability pressure, with negative net margin and return on equity, and insider selling has been notable in recent months. The stock also remains volatile, trading well below its 12-month high.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) have been assigned an average rating of "Moderate Buy" from the ten ratings firms that are currently covering the company, Marketbeat reports. One research analyst has rated the stock with a sell recommendation, three have issued a hold recommendation, five have given a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among brokers that have issued ratings on the stock in the last year is $14.9286.

Several research firms have recently commented on SOUN. DA Davidson reissued a "buy" rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. 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 report on Wednesday. Finally, HC Wainwright reduced their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating for the company in a report on Monday, March 2nd.

Insider Activity

In related news, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the transaction, the chief financial officer directly owned 1,661,121 shares of the company's stock, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the transaction, the insider directly owned 772,364 shares of the company's stock, valued at approximately $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock valued at $2,091,110 in the last 90 days. Insiders own 8.84% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several hedge funds and other institutional investors have recently bought and sold shares of SOUN. Hollencrest Capital Management raised its holdings in shares of SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock worth $25,000 after acquiring an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised 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 last quarter. Dogwood Wealth Management LLC raised its holdings in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after acquiring an additional 1,544 shares during the last quarter. Danske Bank A S acquired a new position in shares of SoundHound AI in the third quarter worth $26,000. Finally, SHP Wealth Management acquired a new position in shares of SoundHound AI in the fourth quarter worth $27,000. 19.28% of the stock is owned by institutional investors and hedge funds.

SoundHound AI Price Performance

SOUN opened at $8.88 on Friday. The business has a 50 day simple moving average of $7.57 and a 200-day simple moving average of $10.18. The stock has a market capitalization of $3.75 billion, a P/E ratio of -18.89 and a beta of 2.58. SoundHound AI has a 12 month low of $5.83 and a 12 month high of $22.17.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. The firm's quarterly revenue was up 51.7% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.06) earnings per share. Research analysts anticipate that SoundHound AI will post -0.34 EPS for the current year.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: SoundHound posted record Q1 revenue of $44.2 million, up about 52% year over year, and exceeded revenue expectations, showing continued momentum in its voice AI business. SoundHound AI Reports Record Q1 Revenue of $44.2 Million, Up 52%
• Positive Sentiment: The company launched OASYS, a self-learning AI agent platform, which could expand SoundHound’s product offering and support longer-term growth. SoundHound AI (SOUN) Launches OASYS Self-Learning AI Agent Platform
• Positive Sentiment: SoundHound outlined 2027 revenue expectations of at least $350 million to $400 million after the planned LivePerson acquisition, suggesting management sees meaningful future scale. SoundHound outlines 2027 revenue of at minimum $350M-$400M following planned LivePerson acquisition
• Neutral Sentiment: Analysts remain broadly constructive, with at least one recent upgrade to strong-buy and commentary that the stock could have meaningful upside if execution improves. Wall Street Bulls Look Optimistic About SoundHound AI (SOUN): Should You Buy?
• Negative Sentiment: Despite the revenue beat, SoundHound missed earnings estimates and cited higher acquisition-related costs and vendor true-ups, which pressured margins and weighed on investor sentiment. SOUN Q1 Earnings Miss on Higher Costs, Revenue Beat, Stock Down
• Negative Sentiment: Investors also appear concerned that the planned LivePerson deal and broader acquisition strategy could continue to pressure earnings even as revenue grows. SoundHound's stock falls as acquisitions weigh on earnings results

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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