SoundHound AI (NASDAQ:SOUN) Trading Down 1.3% Following Analyst Downgrade

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price fell 1.3% during trading on Tuesday after HC Wainwright lowered their price target on the stock from $26.00 to $20.00. HC Wainwright currently has a buy rating on the stock. SoundHound AI traded as low as $8.16 and last traded at $8.51. 20,798,512 shares traded hands during trading, a decline of 24% from the average session volume of 27,386,893 shares. The stock had previously closed at $8.62.

Several other research analysts have also issued reports on SOUN. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. 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 report on Friday, February 27th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

Insider Transactions at SoundHound AI

In other SoundHound AI news, CTO Timothy Stonehocker sold 29,676 shares of the company’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total value of $356,112.00. Following the sale, the chief technology officer directly owned 544,179 shares of the company’s stock, valued at approximately $6,530,148. This represents a 5.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Michael Zagorsek sold 73,406 shares of the business’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $828,019.68. Following the completion of the transaction, the chief operating officer directly owned 1,787,459 shares of the company’s stock, valued at approximately $20,162,537.52. This trade represents a 3.94% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 460,922 shares of company stock valued at $5,199,073. 9.17% of the stock is owned by corporate insiders.

SoundHound AI News Summary

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

• Positive Sentiment: Zacks/retail attention — Zacks and related outlets note that SOUN is a trending stock with increased user searches and discussion, which can fuel short-term buying interest and volatility. SoundHound AI, Inc. (SOUN) Is a Trending Stock: Facts to Know Before Betting on It
• Positive Sentiment: HC Wainwright retained a Buy rating — the firm kept a Buy stance on SOUN, which supports bullish investor narratives about long-term upside despite recent weakness. HC Wainwright price target change coverage
• Neutral Sentiment: Piper Sandler reiterated a Neutral rating — this keeps a cautious tone from a major sell-side shop and may cap upside until fundamentals or visibility improves. SoundHound AI’s (SOUN) “Neutral” Rating Reiterated at Piper Sandler
• Neutral Sentiment: Comparative coverage from The Motley Fool frames SOUN versus peers — these analyst/opinion pieces can shape investor allocation decisions but are speculative rather than new fundamental data. Battle Royale: BigBear.ai vs. SoundHound AI. Only One Can Make You Rich.
• Neutral Sentiment: AmericanBankingNews contrast pieces — additional commentary comparing SOUN to other small-cap names adds context but is unlikely to move the stock materially on its own. SoundHound AI (NASDAQ:SOUN) & Triller Group (NASDAQ:ILLR) Critical Contrast
• Negative Sentiment: Price-target cut from HC Wainwright — the firm trimmed its target from $26 to $20, reducing implied upside and providing a concrete negative datapoint that can pressure sentiment despite the Buy rating. HC Wainwright price target cut coverage

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of SOUN. Royal Bank of Canada grew its holdings in SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock valued at $1,301,000 after purchasing an additional 66,714 shares during the period. Integrated Wealth Concepts LLC grew its stake in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after acquiring an additional 1,201 shares during the period. NewEdge Advisors LLC grew its stake in SoundHound AI by 12.9% in the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after acquiring an additional 4,692 shares during the period. Goldman Sachs Group Inc. increased its holdings in SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after acquiring an additional 1,085,473 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in SoundHound AI by 10.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock worth $5,620,000 after acquiring an additional 63,398 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Price Performance

The company’s fifty day simple moving average is $9.48 and its 200-day simple moving average is $12.78. The firm has a market capitalization of $3.58 billion, a PE ratio of -170.17 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting analysts’ consensus estimates of ($0.02). The business had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.82%. The company’s quarterly revenue was up 59.4% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.05) earnings per share. Analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

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.