SoundHound AI (NASDAQ:SOUN) Shares Down 1.5% - Should You Sell?

Key Points

• SOUN fell 1.5% to about $13.24 during mid-day trading with 27.46M shares traded (down ~40% vs. average); the stock has a $5.4B market cap, sits below its 50‑day moving average ($16.69) but near its 200‑day average ($13.08), and carries a consensus rating of “Moderate Buy” with an average target of $15.93.
• SoundHound beat the quarter (EPS -$0.03 vs. -$0.09 expected; revenue $42.05M vs. $40.48M) with revenue up 67.6% YoY, yet it remains deeply unprofitable (net margin -211.16%, ROE -100.07%) and sell‑side forecasts show a negative FY EPS (~-0.38).
• Insiders have been active sellers recently — the CTO and COO each sold large blocks (roughly 70k shares each) and insiders sold ~785,917 shares (~$14M) in the last 90 days, while insiders still own about 9.17% of the company.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report)'s stock price fell 1.5% during mid-day trading on Wednesday . The company traded as low as $13.21 and last traded at $13.24. 27,461,233 shares were traded during mid-day trading, a decline of 40% from the average session volume of 45,849,535 shares. The stock had previously closed at $13.44.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on SOUN shares. LADENBURG THALM/SH SH raised SoundHound AI from a "neutral" rating to a "buy" rating and boosted their target price for the stock from $9.00 to $16.00 in a report on Monday, August 11th. HC Wainwright boosted their price objective on SoundHound AI from $18.00 to $26.00 and gave the stock a "buy" rating in a research note on Thursday, October 16th. Wall Street Zen cut SoundHound AI from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Northland Securities raised SoundHound AI from a "market perform" rating to an "outperform" rating and set a $14.50 price target for the company in a report on Friday, August 8th. Finally, Wedbush reiterated an "outperform" rating and set a $16.00 price target on shares of SoundHound AI in a research report on Thursday, September 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, SoundHound AI currently has a consensus rating of "Moderate Buy" and an average target price of $15.93.

SoundHound AI Price Performance

The stock has a market capitalization of $5.40 billion, a price-to-earnings ratio of -15.76 and a beta of 2.60. The stock has a 50-day moving average of $16.69 and a 200 day moving average of $13.08.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.06. The company had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 100.07%. The company's revenue for the quarter was up 67.6% on a year-over-year basis. During the same quarter last year, the firm earned ($0.04) EPS. SoundHound AI has set its FY 2025 guidance at EPS. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity at SoundHound AI

In related news, CTO Timothy Stonehocker sold 70,524 shares of the company's stock in a transaction dated Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $1,410,480.00. Following the completion of the sale, the chief technology officer owned 606,525 shares in the company, valued at approximately $12,130,500. This represents a 10.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, COO Michael Zagorsek sold 69,837 shares of the stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $16.00, for a total value of $1,117,392.00. Following the completion of the transaction, the chief operating officer directly owned 1,860,790 shares in the company, valued at $29,772,640. The trade was a 3.62% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 785,917 shares of company stock worth $13,955,610. 9.17% of the stock is owned by company insiders.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently bought and sold shares of the company. Sound Income Strategies LLC boosted its holdings in SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock worth $34,000 after purchasing an additional 575 shares during the last quarter. Investors Research Corp lifted its position in SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company's stock worth $29,000 after buying an additional 700 shares in the last quarter. EP Wealth Advisors LLC boosted its stake in shares of SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after buying an additional 706 shares during the last quarter. Insigneo Advisory Services LLC grew its holdings in shares of SoundHound AI by 7.4% in the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock valued at $200,000 after acquiring an additional 858 shares in the last quarter. Finally, Janney Montgomery Scott LLC increased its position in shares of SoundHound AI by 4.0% in the second quarter. Janney Montgomery Scott LLC now owns 23,073 shares of the company's stock valued at $248,000 after acquiring an additional 880 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

SoundHound AI Company Profile

SoundHound AI, Inc develops independent voice artificial intelligence (AI) solutions that enables businesses across automotive, TV, and IoT, and to customer service industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as Application Programming Interfaces (API) for text and voice queries, support for custom commands, extensive library of content domains, inclusive software development kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics; SoundHound Chat AI that integrates with knowledge domains, pulling real-time data like weather, sports, stocks, flight status, and restaurants; and SoundHound Smart Answering is built to offer customer establishments custom AI-powered voice assistant.

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