SoundHound AI (NASDAQ:SOUN) Stock Price Down 7.7% – Here’s What Happened

Posted by Francis Steltz on Jun 7th, 2026

Shares of SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) fell 7.7% during trading on Friday . The company traded as low as $7.21 and last traded at $7.39. 31,380,194 shares changed hands during mid-day trading, an increase of 14% from the average session volume of 27,570,428 shares. The stock had previously closed at $8.01.

Analyst Ratings Changes

A number of research firms have commented on SOUN. Piper Sandler reissued a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. HC Wainwright cut their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, DA Davidson reissued a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average target price of $14.93.

View Our Latest Stock Analysis on SOUN

SoundHound AI Trading Down 7.7%

The stock has a market capitalization of $3.20 billion, a P/E ratio of -15.72 and a beta of 2.56. The stock’s fifty day moving average price is $7.84 and its two-hundred day moving average price is $9.09.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to the consensus estimate of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The company’s revenue was up 51.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. As a group, analysts expect that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, CFO Nitesh Sharan sold 44,027 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $298,943.33. Following the completion of the sale, the chief financial officer directly owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider James Ming Hom sold 31,019 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 transaction of $210,619.01. Following the sale, the insider owned 772,364 shares of the company’s stock, valued at $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 307,973 shares of company stock worth $2,091,110. Corporate insiders own 8.84% of the company’s stock.

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 SOUN. Royal Bank of Canada raised its holdings in SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock valued at $1,301,000 after buying an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC raised its holdings in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after purchasing an additional 1,201 shares in the last quarter. NewEdge Advisors LLC raised its holdings in SoundHound AI by 12.9% in the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock worth $333,000 after purchasing an additional 4,692 shares in the last quarter. Goldman Sachs Group Inc. raised 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 purchasing 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 holdings in SoundHound AI by 10.1% in the 1st 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 purchasing an additional 63,398 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors.

About SoundHound AI

(Get Free Report)

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.