SoundHound AI (NASDAQ:SOUN) Receives “Buy” Rating from DA Davidson

DA Davidson restated their buy rating on shares of SoundHound AI (NASDAQ:SOUN) in a research note released on Wednesday,Benzinga reports. They currently have a $14.00 price target on the stock.

Other equities analysts also recently issued reports about the stock. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. HC Wainwright cut their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Finally, Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Stock Performance

Shares of NASDAQ:SOUN opened at $8.22 on Wednesday. The company’s 50-day moving average is $7.43 and its 200 day moving average is $10.92. The company has a market capitalization of $3.48 billion, a P/E ratio of -164.37 and a beta of 2.71. SoundHound AI has a fifty-two week low of $5.83 and a fifty-two week high of $22.17.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.02). The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm’s quarterly revenue was up 59.4% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.05) EPS. As a group, research analysts predict that SoundHound AI will post -0.34 earnings per share for the current year.

Insiders Place Their Bets

In related news, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $359,652.72. Following the sale, the chief operating officer directly owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP Majid Emami sold 31,019 shares of the business’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the senior vice president owned 501,826 shares in the company, valued at $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 in the last ninety days. 9.17% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. grew its holdings 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 buying an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC grew its holdings in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S purchased a new position in SoundHound AI during the 3rd quarter valued at about $26,000. SHP Wealth Management purchased a new position in SoundHound AI during the 4th quarter valued at about $27,000. Finally, Financial Consulate Inc. purchased a new position in SoundHound AI during the 3rd quarter valued at about $32,000. 19.28% of the stock is currently owned by institutional investors.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound announced it will acquire LivePerson for roughly $43M in equity value (≈22% premium). Management says the combination creates an end-to-end voice + messaging conversational AI platform with a large enterprise footprint and a projected ~$500M revenue opportunity. Acquisition press release
• Positive Sentiment: Wedbush analysts view the LivePerson deal as strengthening SoundHound’s position in conversational AI, endorsing the strategic rationale and potential scale benefits. Wedbush commentary
• Positive Sentiment: DA Davidson reaffirmed a “buy” rating with a $14 price target (material upside to current levels), providing a near-term analyst catalyst supporting the rally. Benzinga note
• Positive Sentiment: Analyst pieces highlight the strategic upside: the LivePerson acquisition could add messaging data, enterprise customers and scale that improve revenue mix and margin trajectory. Zacks analysis
• Neutral Sentiment: SoundHound set its Q1 2026 earnings release and webcast for May 7 — this is a near-term catalyst that could confirm revenue/guidance assumptions from the acquisition and the company’s FY guidance. Q1 results notice
• Neutral Sentiment: Longer-form articles flag SoundHound’s recent commercial wins and growth narrative (e.g., carrier deals), useful context but not immediate price catalysts. Growth overview
• Negative Sentiment: Despite the acquisition news, the stock showed recent intraday weakness (closed lower on April 21, -5.65% that session), highlighting continued volatility and investor profit-taking around the deal announcement. Price decline report
• Negative Sentiment: Some coverage points to execution risk (integration of LivePerson, realization of the $500M opportunity) and near-term dilution/financial impacts that could pressure the stock if guidance or Q1 results disappoint. Risk discussion

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.