SoundHound AI (NASDAQ:SOUN) Cut to Strong Sell at Zacks Research

Zacks Research downgraded shares of SoundHound AI (NASDAQ:SOUN) from a hold rating to a strong sell rating in a research report report published on Monday,Zacks.com reports.

A number of other research analysts have also issued reports on SOUN. Piper Sandler decreased their target price on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a report on Monday, January 5th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Finally, DA Davidson set a $14.00 price target on shares of SoundHound AI in a research note on Thursday, January 8th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Performance

NASDAQ SOUN opened at $11.28 on Monday. The firm has a 50 day simple moving average of $11.64 and a 200-day simple moving average of $13.55. SoundHound AI has a one year low of $6.52 and a one year high of $22.17. The firm has a market cap of $4.74 billion, a price-to-earnings ratio of -13.43 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (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 period in the prior year, the business earned ($0.04) EPS. The firm’s quarterly revenue was up 67.6% on a year-over-year basis. Equities analysts predict that SoundHound AI will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 144,326 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the sale, the chief executive officer directly owned 2,198,287 shares in the company, valued at $24,796,677.36. This trade represents a 6.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Majid Emami sold 42,600 shares of the business’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $480,528.00. Following the completion of the sale, the senior vice president directly owned 565,586 shares of the company’s stock, valued at approximately $6,379,810.08. This trade represents a 7.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 462,265 shares of company stock valued at $5,216,518 over the last three months. 9.17% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in shares of SoundHound AI by 16.4% during the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the last quarter. Geode Capital Management LLC raised its position in SoundHound AI by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 8,830,144 shares of the company’s stock worth $94,759,000 after buying an additional 679,436 shares during the last quarter. State Street Corp raised its position in SoundHound AI by 9.1% during the 2nd quarter. State Street Corp now owns 8,476,348 shares of the company’s stock worth $90,951,000 after buying an additional 708,369 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of SoundHound AI by 13.4% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,697,346 shares of the company’s stock worth $91,604,000 after acquiring an additional 672,714 shares during the period. Finally, Northern Trust Corp boosted its holdings in shares of SoundHound AI by 1.2% in the third quarter. Northern Trust Corp now owns 3,181,651 shares of the company’s stock valued at $51,161,000 after acquiring an additional 38,966 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound unveiled a Vision AI approach that blends visual recognition with its conversational voice stack — a potential commercial differentiator for automotive integrations, in‑car commerce and contextual services that could expand addressable markets and partner opportunities. Read More.
• Neutral Sentiment: HC Wainwright trimmed its Q4 2025 EPS estimate slightly (from -$0.08 to -$0.09) but kept a Buy rating and a $26 price target — suggesting analysts still see upside despite modest near‑term profit pressure; consensus full‑year EPS remains a loss (~-0.38). Read More.
• Negative Sentiment: Zacks Research downgraded SoundHound from “Hold” to “Strong Sell,” a headline‑style analyst action that can trigger short‑term selling and sentiment pressure even if other brokers remain constructive. Read More.
• Negative Sentiment: Insider selling: CTO Timothy Stonehocker sold 29,676 shares at an average ~$12 per share (SEC filing disclosed), reducing his stake by ~5.2% — insider sales can be interpreted as a negative signal by some investors, especially when clustered. Read More.

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.