SoundHound AI (NASDAQ:SOUN) Trading 2.3% Higher - Time to Buy?

Key Points

• SoundHound AI shares rose 2.3% to around $7.12 as trading volume came in below average, reflecting a modest move higher rather than a major breakout.
• The company is seeing positive operating momentum, with reports that its drive-thru AI is showing measurable ROI and that 96% of organizations with agentic AI deployments said those projects met or exceeded ROI expectations.
• At the same time, investor caution remains due to ongoing losses and recent insider selling, though the company said some of those sales were tied to tax withholding on vested equity awards.

Shares of SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) were up 2.3% on Thursday . The stock traded as high as $7.15 and last traded at $7.12. 23,244,326 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 27,457,070 shares. The stock had previously closed at $6.96.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound highlighted growing restaurant AI momentum, saying its drive-thru AI is showing measurable ROI, which could support broader rollouts and future revenue growth. SoundHound's Drive-Thru AI Shows ROI: Can Restaurant Rollouts Scale?
• Positive Sentiment: The company also released data indicating that 96% of organizations reporting on agentic AI deployments said the projects met or exceeded ROI expectations, reinforcing the investment case for SoundHound’s voice and agentic AI offerings. Research Finds 96% of Organizations Report that Agentic AI Deployments Met or Exceeded ROI Expectations in 2026
• Neutral Sentiment: Several SoundHound executives and insiders sold shares this week, but the company said the transactions were to cover tax withholding obligations tied to equity vesting, which softens the concern. SoundHound AI NASDAQ: SOUN CTO Timothy Stonehocker Sells 18,802 Shares
• Negative Sentiment: Investors are also focused on rising losses and the cluster of insider sales, which has added to caution around the stock and helped weigh on sentiment. SOUN Stock Eyes Worst Month This Year: Insider Share Disposals At SoundHound AI Draw Retail Attention

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the company. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a report on Monday. HC Wainwright dropped their price target on shares of SoundHound AI from $26.00 to $20.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Piper Sandler reaffirmed a "neutral" rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Finally, DA Davidson reiterated a "buy" rating and set a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Trading Up 2.3%

The stock's 50-day moving average price is $7.94 and its 200-day moving average price is $8.81. The company has a market cap of $3.08 billion, a P/E ratio of -15.15 and a beta of 2.56.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last released 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%. The company's revenue was up 51.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.06) EPS. On average, research analysts anticipate that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 31,019 shares of the business'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 completion of the sale, the senior vice president directly owned 501,826 shares of the company's stock, valued at approximately $3,407,398.54. The trade was a 5.82% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Michael Zagorsek sold 64,994 shares of the firm's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total transaction of $484,855.24. Following the transaction, the chief operating officer directly owned 1,669,497 shares in the company, valued at $12,454,447.62. The trade was a 3.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 575,995 shares of company stock worth $4,090,554. 8.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its holdings in SoundHound AI by 16.4% during the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company's stock valued at $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley increased its stake in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock worth $89,606,000 after acquiring an additional 2,917,280 shares during the last quarter. UBS Group AG raised its stake in SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC raised its position in shares of SoundHound AI by 2,259.7% during the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company's stock valued at $21,929,000 after buying an additional 2,106,298 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in SoundHound AI during the third quarter valued at about $21,679,000. 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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