SoundHound AI (NASDAQ:SOUN) Shares Down 3.5% After Analyst Downgrade

Posted by Geri Gentry on Nov 6th, 2026

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report)’s stock price was down 3.5% on Friday after DA Davidson lowered their price target on the stock from $10.00 to $5.00. DA Davidson currently has a buy rating on the stock. SoundHound AI traded as low as $3.88 and last traded at $4.11. 29,074,201 shares traded hands during trading, an increase of 11% from the average daily volume of 26,238,846 shares. The stock had previously closed at $4.26.

Other equities analysts have also recently issued reports about the stock. Piper Sandler decreased their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd. Cantor Fitzgerald cut their price objective on shares of SoundHound AI from $15.00 to $10.00 and set an “overweight” rating on the stock in a research report on Friday. Yorkville Ives assumed coverage on shares of SoundHound AI in a research report on Monday, October 5th. They issued an “in-line” rating and a $6.50 price objective on the stock. Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Finally, Wall Street Zen raised shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $9.50.

Get Our Latest Research Report on SOUN

Insider Activity

In other news, SVP Majid Emami sold 38,730 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the transaction, the senior vice president owned 834,253 shares of the company’s stock, valued at $5,280,821.49. This trade represents a 4.44% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. This represents a 3.38% decrease in their ownership of the stock. 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. In the last 90 days, insiders sold 288,758 shares of company stock worth $1,828,598. Insiders own 8.84% of the company’s stock.

SoundHound AI News Summary

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

Positive Sentiment: Management is targeting sustained adjusted EBITDA profitability in the second half of 2027 and plans roughly $120 million in cost reductions. The LivePerson acquisition and growth in recurring revenue are central to that plan. Q3 earnings call highlights
Positive Sentiment: Commercial opportunities expanded through a SoundHound deal to bring its voice AI to about 20 million U.S. LG smart TVs and a broader partnership to integrate its technology across Ultraviolette’s electric vehicle lineup. Ultraviolette partnership expansion
Neutral Sentiment: Third-quarter revenue reached a record $62.4 million, up 48.5% year over year. Reports differed on whether sales narrowly missed estimates, while the quarterly loss was narrower than some forecasts but the company remains unprofitable. Q3 results and outlook
Neutral Sentiment: Cantor Fitzgerald lowered its price target to $10 from $15 but kept an Overweight rating, indicating continued optimism alongside a more cautious valuation. Cantor Fitzgerald price target
Negative Sentiment: Investors remain concerned about rising AI-related costs, margin pressure, cash burn and ongoing losses; profitability is not expected until 2027. Those concerns appear to be outweighing the strong sales growth and upbeat longer-term guidance. Shares retreat despite guidance

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently bought and sold shares of the business. Swiss National Bank lifted its position in shares of SoundHound AI by 3.7% in the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after buying an additional 27,300 shares during the last quarter. Calamos Advisors LLC bought a new position in shares of SoundHound AI during the 3rd quarter worth approximately $4,195,000. California State Teachers Retirement System boosted its stake in shares of SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after acquiring an additional 87,998 shares during the period. AXQ Capital LP increased its holdings in shares of SoundHound AI by 395.6% during the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after acquiring an additional 203,345 shares during the last quarter. Finally, Themes Management Co LLC increased its holdings in shares of SoundHound AI by 86.5% during the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock worth $1,315,000 after acquiring an additional 88,820 shares during the last quarter. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Stock Performance

The business has a fifty day moving average of $5.56 and a two-hundred day moving average of $7.06. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of -10.82 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.07. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The business had revenue of $62.43 million during the quarter, compared to the consensus estimate of $61.71 million. During the same quarter last year, the firm posted ($0.03) EPS. The company’s quarterly revenue was up 48.5% on a year-over-year basis. As a group, sell-side analysts predict that SoundHound AI, Inc. will post -0.39 EPS for the current fiscal year.

About SoundHound AI

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SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.