SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.6% After Insider Selling

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 3.6% during mid-day trading on Tuesday following insider selling activity. The company traded as low as $10.02 and last traded at $10.04. Approximately 21,680,022 shares were traded during trading, a decline of 50% from the average daily volume of 43,115,602 shares. The stock had previously closed at $10.41.

Specifically, CTO Timothy Stonehocker sold 31,329 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $353,391.12. Following the completion of the sale, the chief technology officer owned 575,976 shares in the company, valued at $6,497,009.28. The trade was a 5.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Michael Zagorsek sold 73,406 shares of the firm’s stock in a transaction that occurred 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 transaction, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In related news, CFO Nitesh Sharan sold 60,780 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $685,598.40. Following the completion of the sale, the chief financial officer directly owned 1,705,148 shares in the company, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Analyst Upgrades and Downgrades

SOUN has been the topic of a number of recent research reports. DA Davidson restated a “buy” rating and set a $17.00 price objective on shares of SoundHound AI in a research note on Tuesday, November 18th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Piper Sandler upped their price objective on shares of SoundHound AI from $12.00 to $15.00 and gave the stock a “neutral” rating in a research report on Friday, November 7th. Wedbush reissued an “outperform” rating and issued a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Tuesday, October 14th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $17.07.

Key SoundHound AI News

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

• Positive Sentiment: Cantor Fitzgerald upgraded SOUN to overweight, citing traction in voice and conversational AI services — a potential institutional catalyst. Read More.
• Positive Sentiment: MarketBeat and other feature pieces position SoundHound as an “application‑layer” AI pure play after the Amelia acquisition and projected revenue scale, reinforcing the narrative that SoundHound can monetize voice/agent AI beyond chip vendors. Read More.
• Positive Sentiment: Recent quarterly results showed accelerating revenue (strong year‑over‑year growth and an EPS beat) — evidence management can grow top line while mapping a path toward break‑even, which supports medium‑term fundamentals. Read More.
• Neutral Sentiment: Zacks notes meaningful automotive headwinds (tariffs, sector softness) but argues rising enterprise AI adoption could offset that pressure in 2026 — a mixed thesis that keeps upside conditional on enterprise wins. Read More.
• Neutral Sentiment: The stock is also getting thematic coverage (Motley Fool pieces) highlighting the long‑term opportunity in voice AI; these are strategic/long‑term narratives rather than immediate catalysts. Read More.
• Neutral Sentiment: Broad sector/rotation headlines have grouped SoundHound with other tech names trading down today, adding intraday selling pressure that is not specific to company fundamentals. Read More.
• Negative Sentiment: Significant insider selling was disclosed this week: CEO, CFO, COO, CTO and other senior executives sold large blocks (Dec. 22–26, ~$10.66–$11.28 average). The scale and concentration of sales is a clear near‑term sentiment headwind. Read More.
• Negative Sentiment: Counterpoints in the press warn about valuation/speculation risks in pure‑play AI names; if execution or growth targets slip, momentum could reverse. Read More.

SoundHound AI Stock Performance

The stock’s fifty day simple moving average is $13.04 and its two-hundred day simple moving average is $13.48. The stock has a market capitalization of $4.22 billion, a P/E ratio of -11.95 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) EPS for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The company had revenue of $42.05 million for the quarter, compared to analyst estimates of $40.48 million. During the same quarter in the previous year, the business earned ($0.04) earnings per share. SoundHound AI’s revenue was up 67.6% compared to the same quarter last year. As a group, analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its position in shares of SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock valued at $698,798,000 after buying an additional 6,132,648 shares during the last quarter. Geode Capital Management LLC boosted its holdings in SoundHound AI by 8.3% in the second quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company’s stock valued at $94,759,000 after acquiring an additional 679,436 shares during the last quarter. State Street Corp boosted its holdings in SoundHound AI by 9.1% in the second quarter. State Street Corp now owns 8,476,348 shares of the company’s stock valued at $90,951,000 after acquiring an additional 708,369 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in SoundHound AI by 13.4% during the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,697,346 shares of the company’s stock valued at $91,604,000 after purchasing an additional 672,714 shares during the period. Finally, Northern Trust Corp raised its holdings in SoundHound AI by 1.2% during the 3rd quarter. Northern Trust Corp now owns 3,181,651 shares of the company’s stock worth $51,161,000 after purchasing an additional 38,966 shares during the last quarter. 19.28% of the stock is owned by institutional investors and hedge funds.

About SoundHound AI

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.