SoundHound AI (NASDAQ:SOUN) Stock Price Up 2.9% - Still a Buy?

Key Points

• Shares surged 2.9% to about $8.81 intraday on Monday with ~24.4M shares traded (below the 27.3M average); the stock sits under its 50‑day ($10.69) and 200‑day ($13.32) moving averages.
• Analyst sentiment is mixed but leans positive overall — MarketBeat shows a consensus "Moderate Buy" and a $16.07 price target, while individual reports range from Strong Buy to Strong Sell and include recent target and rating changes.
• Fundamentals are mixed: the latest quarter beat revenue ($42.05M) and EPS expectations with revenue up 67.6% year‑over‑year, but the company remains unprofitable with negative margins and insiders have sold roughly 462K shares (~$5.2M) in the past 90 days.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) shot up 2.9% during trading on Monday . The stock traded as high as $8.94 and last traded at $8.81. 24,389,297 shares were traded during mid-day trading, a decline of 11% from the average session volume of 27,342,863 shares. The stock had previously closed at $8.56.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on SOUN. Piper Sandler cut their price target on shares of SoundHound AI from $15.00 to $11.00 and set a "neutral" rating on the stock in a report on Monday, January 5th. Zacks Research downgraded shares of SoundHound AI from a "hold" rating to a "strong sell" rating in a research report on Monday, January 12th. Cantor Fitzgerald upgraded SoundHound AI from a "neutral" rating to an "overweight" rating and raised their target price for the company from $13.00 to $15.00 in a report on Friday, December 12th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research report on Thursday, December 18th. Finally, HC Wainwright increased their price objective on SoundHound AI from $18.00 to $26.00 and gave the company a "buy" rating in a report on Thursday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, SoundHound AI has a consensus rating of "Moderate Buy" and a consensus price target of $16.07.

SoundHound AI Stock Up 2.9%

The firm's fifty day moving average is $10.69 and its 200 day moving average is $13.32.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly 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 the consensus estimate of $40.48 million. SoundHound AI had a negative return on equity of 93.64% and a negative net margin of 211.16%.The firm's revenue was up 67.6% compared to the same quarter last year. During the same period last year, the business posted ($0.04) earnings per share. On average, analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Activity

In other news, CTO Timothy Stonehocker sold 29,676 shares of the stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $12.00, for a total value of $356,112.00. Following the completion of the sale, the chief technology officer directly owned 544,179 shares of the company's stock, valued at approximately $6,530,148. This represents a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO Michael Zagorsek sold 73,406 shares of the firm's stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the sale, the chief operating officer owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 462,265 shares of company stock worth $5,216,518 over the last 90 days. Company insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Royal Bank of Canada grew its position in SoundHound AI by 71.3% in the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company's stock worth $1,301,000 after purchasing an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC lifted its stake in shares of SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company's stock valued at $119,000 after buying an additional 1,201 shares during the period. NewEdge Advisors LLC lifted its stake in shares of SoundHound AI by 12.9% in the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company's stock valued at $333,000 after buying an additional 4,692 shares during the period. Goldman Sachs Group Inc. grew its position in SoundHound AI by 69.8% during the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company's stock worth $21,434,000 after buying an additional 1,085,473 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in SoundHound AI by 10.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company's stock worth $5,620,000 after buying an additional 63,398 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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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