SoundHound AI's (SOUN) Buy Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed a Buy rating on SoundHound AI with a $14 price target — roughly a 70% upside — and MarketBeat shows a consensus "Moderate Buy" with an average analyst target of $14.93.
• SoundHound agreed to acquire LivePerson to build an omnichannel conversational‑AI platform, and management raised FY‑2027 revenue guidance to about $350–$400M while citing a combined ~$500M revenue opportunity.
• The company reported revenue of $55.06M (beating estimates) with 59.4% YoY growth and EPS of ($0.02) in the latest quarter, but insiders sold a total of 307,973 shares (~$2.09M) over the last quarter.

SoundHound AI (NASDAQ:SOUN - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at DA Davidson in a note issued to investors on Wednesday,Benzinga reports. They currently have a $14.00 price target on the stock. DA Davidson's target price would indicate a potential upside of 70.42% from the company's previous close.

A number of other research analysts also recently weighed in on SOUN. HC Wainwright dropped their price target on 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 target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of SoundHound AI in a research report on Friday, January 9th. Finally, Zacks Research raised SoundHound AI from a "strong sell" rating to a "hold" rating in a research report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $14.93.

SoundHound AI Stock Performance

Shares of SoundHound AI stock traded up $0.37 during trading on Wednesday, hitting $8.22. 29,286,755 shares of the stock traded hands, compared to its average volume of 26,602,441. The stock has a market cap of $3.47 billion, a P/E ratio of -163.87 and a beta of 2.71. SoundHound AI has a twelve month low of $5.83 and a twelve month high of $22.17. The company has a fifty day moving average price of $7.43 and a two-hundred day moving average price of $10.94.

SoundHound AI (NASDAQ:SOUN - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The business had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. During the same period last year, the business earned ($0.05) EPS. The firm's revenue was up 59.4% compared to the same quarter last year. On average, equities research analysts expect that SoundHound AI will post -0.34 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Keyvan Mohajer sold 124,510 shares of the business's stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $845,422.90. Following the sale, the chief executive officer owned 2,073,777 shares of the company's stock, valued at $14,080,945.83. The trade was a 5.66% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of the business's stock in a transaction 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 completion of the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This represents a 2.96% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 307,973 shares of company stock worth $2,091,110 over the last quarter. Corporate insiders own 9.17% of the company's stock.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company's stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the period. Geode Capital Management LLC lifted its stake in shares of SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company's stock valued at $91,543,000 after acquiring an additional 273,097 shares during the period. Morgan Stanley lifted its stake in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company's stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the period. State Street Corp lifted its stake in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company's stock valued at $86,652,000 after acquiring an additional 80,908 shares during the period. Finally, UBS Group AG lifted its stake in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company's stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during the period. Institutional investors and hedge funds own 19.28% of the company's stock.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: SoundHound agreed to acquire LivePerson, combining its voice/agentic AI with LivePerson's digital messaging business to create a broad omnichannel conversational-AI platform; management says the combined company will serve one of the largest enterprise footprints in the space (including 25 of the Fortune 100) and expects a roughly $500M revenue opportunity and an accelerated path to profitability. Acquisition press release
• Positive Sentiment: Management raised FY‑2027 revenue guidance to roughly $350M–$400M versus consensus near $279M, giving investors clearer revenue visibility and supporting the narrative of faster-scale economics (the EPS guidance entry was incomplete in the release). (Guidance disclosed 4/21.)
• Positive Sentiment: Sales/partnership traction continues: Associated Carrier Group members have agreed to use SoundHound’s AI platform for customer service and staff-experience use cases, expanding addressable market in telecom Tier 2/3 operators. Partnership article
• Neutral Sentiment: Multiple market write-ups and analyst commentaries this week (Zacks, Yahoo, Blockonomi) have highlighted SOUN as a trending AI name and discussed upside potential — this increases retail and institutional attention but is not a direct driver of fundamentals. Zacks acquisition analysis
• Negative Sentiment: Despite the strategic news, the stock saw a pullback the prior session (reports noted a ~-5.7% close) — indicating profit-taking/short-term volatility as traders digest the deal terms, integration risk, and dilution/financial assumptions tied to the acquisition. Market reaction article

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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