SoundHound AI Target of Unusually Large Options Trading (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) was the target of some unusual options trading on Wednesday. Investors acquired 92,140 call options on the stock. This represents an increase of approximately 50% compared to the average daily volume of 61,497 call options.

SoundHound AI News Roundup

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

• Positive Sentiment: Company fundamentals: coverage highlights SoundHound’s platform push into automation and “agentic” AI, noting revenue nearly doubled in 2025 as enterprises adopt end‑to‑end workflow automation — a material growth narrative that supports a higher valuation if adoption continues. SoundHound AI Platform Expands: Is Automation the Catalyst?
• Positive Sentiment: Unusual options activity: investors bought ~92,140 call options (≈50% above average daily call volume), signaling concentrated bullish bets that can amplify upside into earnings. (company options flow reported 4/15)
• Positive Sentiment: Short‑squeeze and trading momentum: outlets report short‑squeeze chatter and a sharp intraday rally as traders position ahead of earnings, which can push the stock higher in the near term via forced covering and momentum flows. SoundHound AI Rallies 9% as Short Squeeze Chatter Heats Up Ahead of Earnings
• Neutral Sentiment: Recent market notices: end‑of‑day recaps showed modest prior gains, reflecting ongoing investor interest but not new fundamental disclosures. SoundHound AI, Inc. (SOUN) Rises Higher Than Market: Key Facts
• Negative Sentiment: Elevated risk/volatility: the rally appears driven largely by speculative flows (options buying and short‑squeeze talk) rather than new financial guidance; that increases the chance of sharp reversals after earnings if results or guidance disappoint. (risk noted in trading coverage)

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on SOUN shares. Piper Sandler reaffirmed a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 target price on SoundHound AI in a report on Thursday, January 8th. Finally, Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $14.93.

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 31,019 shares of the company’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the senior vice president directly owned 501,826 shares of the company’s stock, valued at $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Michael Zagorsek sold 52,968 shares of the company’s stock in a transaction on Friday, March 20th. The shares were 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 of the company’s stock, valued at approximately $11,777,193.89. This represents a 2.96% 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 valued at $2,091,110 over the last 90 days. 9.17% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. boosted its stake in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after purchasing an additional 1,909,868 shares during the period. Geode Capital Management LLC boosted 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 purchasing an additional 273,097 shares during the period. Morgan Stanley boosted 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 purchasing an additional 2,917,280 shares during the period. State Street Corp boosted its stake in SoundHound AI by 0.9% during the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after purchasing an additional 80,908 shares during the period. Finally, UBS Group AG boosted its stake in SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the period. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN opened at $7.85 on Thursday. The firm has a market cap of $3.32 billion, a price-to-earnings ratio of -156.97 and a beta of 2.71. The business’s 50-day simple moving average is $7.45 and its 200-day simple moving average is $11.23. SoundHound AI has a 52 week low of $5.83 and a 52 week high of $22.17.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting analysts’ consensus estimates of ($0.02). The business had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm’s revenue for the quarter was up 59.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($0.05) EPS. As a group, equities research analysts forecast that SoundHound AI 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.