SoundHound AI (NASDAQ:SOUN – Get Free Report) was upgraded by stock analysts at Wall Street Zen from a “strong sell” rating to a “sell” rating in a research note issued on Saturday.
Other equities analysts also recently issued research reports about the stock. DA Davidson decreased their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler reduced their target price on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a report on Thursday, August 6th. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, SoundHound AI has a consensus rating of “Moderate Buy” and a consensus target price of $13.60.
Check Out Our Latest Stock Analysis on SOUN
SoundHound AI Stock Performance
SoundHound AI (NASDAQ:SOUN – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same quarter in the prior year, the business posted ($0.19) EPS. The company’s revenue for the quarter was up 45.0% on a year-over-year basis. As a group, equities research analysts predict that SoundHound AI will post -0.33 EPS for the current fiscal year.
Insider Transactions at SoundHound AI
In related news, insider James Ming Hom sold 28,843 shares of the company’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the sale, the insider owned 743,521 shares in the company, valued at $5,546,666.66. This represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $140,262.92. Following the sale, the chief technology officer owned 502,290 shares of the company’s stock, valued at approximately $3,747,083.40. This represents a 3.61% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock worth $1,999,444 over the last 90 days. Company insiders own 8.84% of the company’s stock.
Institutional Investors Weigh In On SoundHound AI
A number of institutional investors and hedge funds have recently made changes to their positions in SOUN. Vanguard Group Inc. grew its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC raised its stake in SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after acquiring an additional 273,097 shares during the last quarter. Morgan Stanley raised its stake in SoundHound AI by 48.1% during the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the last quarter. State Street Corp lifted its position in SoundHound AI by 0.9% during the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after acquiring an additional 80,908 shares during the period. Finally, UBS Group AG lifted its position in SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after acquiring an additional 2,676,707 shares during the period. 19.28% of the stock is owned by hedge funds and other institutional investors.
Key Headlines Impacting SoundHound AI
Here are the key news stories impacting SoundHound AI this week:
- Positive Sentiment: SoundHound’s record second-quarter results exceeded expectations, with revenue rising 45% year over year to $61.9 million and adjusted losses narrowing significantly. Management also raised its 2026 revenue outlook, strengthening the growth narrative. SoundHound’s Q2 Results Fuel Estimate Hikes: Is the Stock a Buy Now?
- Positive Sentiment: Rapid adoption of the OASYS agentic-AI platform is reportedly shortening sales cycles and accelerating customer onboarding, offering a potential catalyst for sustained enterprise growth. 5 Must-Read Analyst Questions From SoundHound AI’s Q2 Earnings Call
- Positive Sentiment: Analyst optimism remains strong: the average Wall Street price target is approximately $12.71, while one prominent analyst cited potential gains of about 167% if the market begins valuing SoundHound more in line with its revenue growth. SoundHound Shed a Quarter of Its Value Over 12 Months: 167% Gains To Follow Says A Prominent Analyst
- Neutral Sentiment: Northland Securities improved its full-year 2026 and 2027 EPS forecasts, but still expects SoundHound to remain unprofitable, with estimated losses of $0.38 per share in 2026 and $0.32 in 2027.
- Negative Sentiment: Investors remain concerned about ongoing cash burn, negative margins and the company’s premium valuation. SoundHound’s strong revenue growth has not yet translated into profits, creating pressure for execution to remain excellent.
- Negative Sentiment: Northland lowered its fourth-quarter 2026 EPS forecast to a $0.11 loss from a $0.10 loss, underscoring that profitability remains a longer-term objective despite better growth estimates.
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.
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