SoundHound AI (NASDAQ:SOUN) Trading 1.8% Higher – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price rose 1.8% during trading on Wednesday . The stock traded as high as $11.30 and last traded at $11.28. Approximately 26,405,893 shares changed hands during trading, a decline of 10% from the average daily volume of 29,493,570 shares. The stock had previously closed at $11.08.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound unveiled a new Vision AI capability that combines visual recognition with its voice stack — a strategic expansion aimed at deeper automotive integrations and new commerce use cases that could boost revenue per customer if it converts into OEM/dealer or retail deals. Vision AI article
• Neutral Sentiment: HC Wainwright trimmed its Q4 2025 EPS forecast slightly (from -$0.08 to -$0.09) but still rates SOUN a Buy with a $26 target — this is a modest near-term revision that leaves the upbeat long‑term thesis intact. HC Wainwright note (MarketBeat)
• Neutral Sentiment: Recent coverage and MarketBeat summaries show a mixed analyst landscape (targets ranging widely and a consensus “Moderate Buy”) and significant institutional holdings — these factors can amplify moves but are not a near-term catalyst by themselves. MarketBeat coverage
• Negative Sentiment: Zacks Research downgraded SOUN from Hold to Strong Sell, which is likely to pressure sentiment and could trigger short-term selling by momentum-driven funds. Zacks downgrade TickerReport
• Negative Sentiment: CTO Timothy Stonehocker sold 29,676 shares (avg $12.00) in early January — a material reduction in insider holdings that can be read negatively by investors monitoring insider activity; SEC filing available for verification. SEC filing

Analyst Ratings Changes

SOUN has been the topic of several research analyst reports. Zacks Research downgraded shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a report on Monday. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday. Finally, Piper Sandler reduced their price objective on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $16.07.

SoundHound AI Stock Up 1.8%

The stock has a market cap of $4.74 billion, a price-to-earnings ratio of -13.43 and a beta of 2.65. The company’s 50-day moving average is $11.73 and its 200-day moving average is $13.57.

SoundHound AI (NASDAQ:SOUN) last announced 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 firm had revenue of $42.05 million during the quarter, compared to analysts’ expectations of $40.48 million. During the same quarter last year, the company earned ($0.04) earnings per share. The company’s revenue for the quarter was up 67.6% compared to the same quarter last year. On average, research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insiders Place Their Bets

In other SoundHound AI news, CEO Keyvan Mohajer sold 144,326 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the completion of the transaction, the chief executive officer directly owned 2,198,287 shares of the company’s stock, valued at approximately $24,796,677.36. This trade represents a 6.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Michael Zagorsek sold 73,406 shares of the company’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the sale, the chief operating officer directly owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 462,265 shares of company stock worth $5,216,518 over the last quarter. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently added to or reduced their stakes in the company. Danske Bank A S bought a new stake in SoundHound AI during the third quarter worth about $26,000. Investors Research Corp boosted its holdings in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after acquiring an additional 700 shares in the last quarter. Financial Consulate Inc. bought a new stake in SoundHound AI during the 3rd quarter worth approximately $32,000. Sound Income Strategies LLC increased its holdings in SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after purchasing an additional 575 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its position in SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the last quarter. 19.28% of the stock is owned by institutional investors.

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.