SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.8% - Time to Sell?

Key Points

• SoundHound AI shares fell 3.8% on Wednesday to $6.75, with trading volume slightly below average. The stock remains volatile and is still well below its 50-day and 200-day moving averages.
• Recent news flow was mixed but leaned positive, including the company being named the overall leader in the 2026 ISG Buyers Guide for Conversational AI Emerging Providers and multiple analyst notes pointing to upside potential. SoundHound also plans to participate in the D.A. Davidson 2026 Technology & Consumer Conference.
• Wall Street remains cautiously bullish overall, with a consensus “Moderate Buy” rating and an average price target of $14.93. That view is supported by revenue growth of 51.7% year over year last quarter, though the company still posted a loss and insiders have sold shares recently.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shares traded down 3.8% during mid-day trading on Wednesday . The company traded as low as $6.75 and last traded at $6.75. 25,440,203 shares changed hands during trading, a decline of 7% from the average session volume of 27,492,367 shares. The stock had previously closed at $7.02.

More SoundHound AI News

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

• Positive Sentiment: SoundHound was named the overall Leader in the 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers, earning top marks across every evaluated category. That recognition can bolster investor confidence in the company’s competitive position and product quality. SoundHound AI Named As Overall Leader in The 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers
• Positive Sentiment: Several analyst-focused articles highlighted upbeat Wall Street sentiment, with one note pointing to an average brokerage recommendation that leans toward a buy and another saying analysts see significant upside potential. That kind of coverage can support shares by reinforcing bullish expectations. Is SoundHound AI (SOUN) a Buy as Wall Street Analysts Look Optimistic? Wall Street Thinks This beaten Down AI Stock Could Easily Double From Here
• Neutral Sentiment: The company also announced it will participate in the D.A. Davidson 2026 Technology & Consumer Conference, giving management another chance to discuss strategy and growth prospects, but this is not usually a direct catalyst on its own. SoundHound AI to Participate in D.A. Davidson 2026 Technology & Consumer Conference
• Neutral Sentiment: One article discussed governance changes to the company’s bylaws, noting they could strengthen shareholder litigation rights and accountability. This is more of a governance development than a near-term operating catalyst. Is SoundHound AI (SOUN) Quietly Rewriting Its Governance To Shift The Investor-Litigation Balance?
• Negative Sentiment: A separate note on short interest showed no meaningful update in the reported data, so it does not appear to be a strong fresh catalyst, though SoundHound remains a volatile stock with sentiment-driven trading.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. 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. HC Wainwright lowered their price target on SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a report on Monday, March 2nd. Finally, Piper Sandler reaffirmed a "neutral" rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $14.93.

SoundHound AI Stock Performance

The stock has a market capitalization of $2.92 billion, a P/E ratio of -14.36 and a beta of 2.56. The firm has a 50-day moving average price of $7.89 and a 200 day moving average price of $9.01.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. SoundHound AI's revenue for the quarter was up 51.7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.06) earnings per share. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Activity

In related news, insider James Ming Hom sold 31,019 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the transaction, the insider directly owned 772,364 shares in the company, valued at $5,244,351.56. This trade represents a 3.86% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the transaction, the chief operating officer owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 307,973 shares of company stock worth $2,091,110. 8.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently bought and sold shares of the stock. NewEdge Advisors LLC grew its position in SoundHound AI by 62.1% during the 1st quarter. NewEdge Advisors LLC now owns 95,657 shares of the company's stock worth $657,000 after acquiring an additional 36,644 shares during the last quarter. Verus Capital Partners LLC bought a new position in SoundHound AI during the 1st quarter worth approximately $71,000. Amundi grew its position in SoundHound AI by 112.4% during the 1st quarter. Amundi now owns 24,046 shares of the company's stock worth $165,000 after acquiring an additional 12,725 shares during the last quarter. California State Teachers Retirement System grew its position in SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company's stock worth $3,023,000 after acquiring an additional 87,998 shares during the last quarter. Finally, Empowered Funds LLC grew its position in SoundHound AI by 19.6% during the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company's stock worth $95,000 after acquiring an additional 2,277 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

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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