SoundHound AI (NASDAQ:SOUN) COO Michael Zagorsek Sells 64,994 Shares

Key Points

• SoundHound AI COO Michael Zagorsek sold 64,994 shares at an average price of $7.46, worth about $484,855. The company said the sale was to cover tax withholding tied to vested equity awards, and his remaining stake still totals about 1.67 million shares.
• The stock was trading near $6.96 at the time of the report, well below its 52-week high of $22.17. SoundHound also remains highly volatile, with a beta of 2.56 and a market cap of about $3.01 billion.
• SoundHound’s latest earnings showed mixed results: revenue rose 51.7% year over year to $44.2 million, but EPS came in slightly worse than expected at -$0.06. Analysts currently have a consensus rating of Moderate Buy with an average target price of $14.93.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) COO Michael Zagorsek sold 64,994 shares of the business's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Michael Zagorsek also recently made the following trade(s):

• On Friday, March 20th, Michael Zagorsek sold 52,968 shares of SoundHound AI stock. The shares were sold at an average price of $6.79, for a total value of $359,652.72.

SoundHound AI Price Performance

Shares of NASDAQ SOUN traded down $0.07 during trading on Wednesday, reaching $6.96. 19,183,094 shares of the stock traded hands, compared to its average volume of 25,995,096. SoundHound AI, Inc. has a 52-week low of $5.83 and a 52-week high of $22.17. The company has a 50-day moving average of $7.94 and a 200-day moving average of $8.81. The stock has a market capitalization of $3.01 billion, a P/E ratio of -14.81 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The firm had revenue of $44.20 million for the quarter, compared to analysts' expectations of $42.56 million. During the same period 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. Analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

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 Monday. Piper Sandler reaffirmed a "neutral" rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. DA Davidson reissued a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a report on Wednesday, May 6th. Finally, HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. One research 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. According to data from MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and a consensus target price of $14.93.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Analysts and market commentary continue to point to SoundHound’s growth potential in conversational AI and enterprise voice solutions, with some bullish views centered on a longer-term revenue ramp.
• Neutral Sentiment: Several insider sales were disclosed, but the company stated they were for tax withholding related to vesting equity awards rather than open-market selling for discretionary reasons.
• Negative Sentiment: Multiple top executives sold shares in the same filing window, which can add pressure to sentiment and reinforce investor concern about the stock’s near-term valuation.
• Negative Sentiment: Recent coverage also emphasized that SoundHound AI trades at a premium, suggesting some investors may be questioning whether the current price fully reflects near-term execution risk.

Institutional Trading of SoundHound AI

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock worth $452,313,000 after purchasing an additional 1,909,868 shares in the last quarter. Rakuten Securities Inc. increased its stake in SoundHound AI by 877.9% in the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company's stock worth $3,326,000 after acquiring an additional 299,492 shares during the last quarter. Clear Street Group Inc. bought a new position in SoundHound AI in the 3rd quarter worth about $12,944,000. UBS Group AG increased its stake in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company's stock worth $61,059,000 after acquiring an additional 2,676,707 shares during the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its stake in SoundHound AI by 140.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company's stock worth $2,826,000 after acquiring an additional 155,743 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.

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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