SoundHound AI Target of Unusually Large Options Trading (NASDAQ:SOUN)

Key Points

• Unusually high options activity: Investors purchased 120,933 SoundHound AI call options, 51% above typical volume, while the stock rose 12.7% to $7.25 on heavy trading volume.
• Strong growth outlook: SoundHound reported record quarterly revenue of $61.9 million, up 45% year over year, and raised its 2026 revenue forecast to $230 million–$260 million. However, the company remained unprofitable, posting a $42.8 million net loss and $33.7 million in operating cash outflow.
• Mixed investor signals: CEO Keyvan Mohajer and COO Michael Zagorsek sold shares to cover tax obligations, while short interest reportedly stands near 42% of the float. Analysts nevertheless maintain a “Moderate Buy” consensus with an average price target of $14.93.

SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) was the target of some unusual options trading on Thursday. Investors acquired 120,933 call options on the stock. This is an increase of 51% compared to the typical volume of 80,178 call options.

Insider Buying and Selling

In related news, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction on 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 owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This trade represents a 3.75% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 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 value of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. The trade was a 6.10% decrease in their position. 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. Insiders sold 268,022 shares of company stock valued at $1,999,444 in the last 90 days. Corporate insiders own 8.84% of the company's stock.

Institutional Trading of SoundHound AI

Several large investors have recently modified their holdings of the business. Hollencrest Capital Management grew its position in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company's stock worth $25,000 after buying an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in 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 purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC increased its holdings in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company's stock worth $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S bought a new position in SoundHound AI in the third quarter valued at about $26,000. Finally, SHP Wealth Management purchased a new position in shares of SoundHound AI during the 4th quarter valued at $27,000. 19.28% of the stock is owned by institutional investors.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Revenue reached a record $61.9 million, up 45% year over year and well above analyst estimates near $52–$53 million. Gross profit increased 67.6% to $27.9 million, indicating improving operating leverage as demand grows for SoundHound’s voice and agentic AI platform. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: The company exceeded earnings expectations: GAAP loss was $0.10 per share versus the $0.13 consensus, while adjusted results were also better than expected. Management cited OASYS and enterprise adoption as key growth drivers. SoundHound AI Reports Bullish Q2
• Positive Sentiment: SoundHound raised its full-year 2026 revenue outlook to $230 million–$260 million, with the midpoint above the roughly $232.5 million analyst forecast. The stronger outlook helped support the bullish reaction. SoundHound AI Second-Quarter Revenue Rises
• Neutral Sentiment: The company continues pursuing its LivePerson acquisition, while LivePerson is promoting the transaction ahead of its investor town hall. The deal could broaden SoundHound’s conversational AI capabilities, but approval and execution remain unresolved. SoundHound AI Pushes LivePerson Deal
• Negative Sentiment: Despite better-than-expected revenue, SoundHound remained unprofitable, reporting a $42.8 million net loss, a $43.3 million operating loss and $33.7 million of operating cash outflow. The company ended the quarter with $215.6 million in cash. SoundHound AI Stock Rises on Q2 Earnings
• Negative Sentiment: Short interest reportedly represents about 42% of the float, creating volatility and the potential for sharp swings in either direction. Separately, reported insider activity over the past six months consisted of sales rather than purchases, which may weigh on investor confidence. SoundHound AI Leads Most Shorted Stocks

SoundHound AI Stock Up 12.7%

Shares of NASDAQ SOUN traded up $0.81 during midday trading on Thursday, reaching $7.25. The company had a trading volume of 47,799,104 shares, compared to its average volume of 28,502,305. The stock has a market cap of $3.14 billion, a PE ratio of -15.39 and a beta of 2.64. SoundHound AI has a one year low of $5.65 and a one year high of $22.17. The firm's fifty day moving average price is $6.84 and its 200-day moving average price is $7.63.

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

Wall Street Analyst Weigh In

Several research firms have recently weighed in on SOUN. Weiss Ratings restated a "sell (e+)" rating on shares of SoundHound AI in a research report on Monday, June 15th. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research note on Wednesday, May 6th. 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 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. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

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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