SoundHound AI (NASDAQ:SOUN) Price Target Cut to $10.00 by Analysts at DA Davidson

Key Points

• DA Davidson lowered SoundHound AI’s price target from $12 to $10 but maintained a “buy” rating, implying roughly 41% upside from the reported $7.08 share price.
• Analyst sentiment remains generally positive, with a consensus “Moderate Buy” rating and average price target of $14.07, though Piper Sandler cut its target to $7 and kept a “neutral” rating.
• SoundHound reported quarterly revenue of $44.2 million, up 51.7% year over year and above estimates, but missed on EPS and remains unprofitable; its CEO and COO also sold shares to cover tax obligations tied to equity awards.

SoundHound AI (NASDAQ:SOUN - Get Free Report) had its target price decreased by analysts at DA Davidson from $12.00 to $10.00 in a research report issued on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. DA Davidson's price objective indicates a potential upside of 41.24% from the company's current price.

Other research analysts also recently issued research reports about the stock. LADENBURG THALM/SH SH raised shares of SoundHound AI to a "strong-buy" rating in a research report on Wednesday, May 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research note on Monday, June 15th. Finally, Piper Sandler cut their price target on shares of SoundHound AI from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, SoundHound AI has a consensus rating of "Moderate Buy" and an average price target of $14.07.

SoundHound AI Stock Performance

SOUN stock traded up $0.65 during trading on Thursday, reaching $7.08. 88,807,245 shares of the company traded hands, compared to its average volume of 28,796,348. SoundHound AI has a 12 month low of $5.65 and a 12 month high of $22.17. The business has a 50 day simple moving average of $6.84 and a 200 day simple moving average of $7.63. The company has a market capitalization of $3.06 billion, a price-to-earnings ratio of -15.06 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its 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 return on equity of 40.15% and a negative net margin of 91.84%.The firm had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. During the same quarter in the prior year, the firm posted ($0.06) earnings per share. The business's revenue for the quarter was up 51.7% compared to the same quarter last year. As a group, research analysts forecast that SoundHound AI will post -0.45 EPS for the current year.

Insider Activity

In other news, CEO Keyvan Mohajer sold 126,540 shares of the 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 of the company's stock, valued at approximately $14,526,388.02. This represents a 6.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the sale, the chief operating officer directly owned 1,669,497 shares of the company's stock, valued at $12,454,447.62. This trade represents a 3.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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 valued at $1,999,444. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Hollencrest Capital Management boosted its holdings in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock valued at $25,000 after purchasing an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company's stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC lifted its holdings in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock valued at $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S acquired a new position in shares of SoundHound AI in the 3rd quarter valued at about $26,000. Finally, SHP Wealth Management purchased a new stake in shares of SoundHound AI in the fourth quarter worth about $27,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound reported record Q2 revenue of $61.9 million, up 45% year over year and well above analyst expectations near $52–$53 million. Gross profit climbed 67.6% to $27.9 million, indicating improving scale and margins. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: The company’s adjusted loss was smaller than expected, while management cited strong demand for its OASYS enterprise AI platform. SoundHound raised its FY 2026 revenue outlook to $230 million–$260 million, supporting the bullish growth narrative. SoundHound Q2 Earnings Beat on OASYS Demand
• Positive Sentiment: Heavy short interest—reported at approximately 42%—and unusually active call-option buying increased the potential for a short squeeze, helping amplify the post-earnings rally. The stock reached a two-month high on elevated trading volume.
• Neutral Sentiment: Wall Street’s response was broadly favorable, although analysts remain divided on valuation. Several previously published targets are above the current share price, but Piper Sandler lowered its target from $8 to $7 and maintained a neutral rating. SoundHound AI Soars as Wall Street Praises Results and Guidance
• Negative Sentiment: SoundHound remains unprofitable. The quarter included a GAAP loss of $0.10 per share, a $43.3 million operating loss, and $33.7 million of operating cash outflow, despite ending with $215.6 million in cash. Analysts have also flagged execution and operating weaknesses that could make the rally difficult to sustain. Why SoundHound’s Post-Earnings Rally May Be Unsustainable

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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