SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) shares traded down 1.4% on Thursday. The stock traded as low as $3.88 and last traded at $4.26. Approximately 27,074,916 shares traded hands during trading, an increase of 3% from the average session volume of 26,210,928 shares. The stock had previously closed at $4.32.
Key SoundHound AI News
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, supported by a planned $120 million in cost savings and the integration of LivePerson. SOUN Q3 Earnings Call Highlights 2027 Profitability Target
- Positive Sentiment: Commercial momentum includes an expanded Ultraviolette partnership to bring voice AI to its electric motorcycle lineup, alongside an LG deal covering about 20 million U.S. smart TVs. SoundHound AI and Ultraviolette Announce Major Expansion
- Neutral Sentiment: Q3 revenue reached a record $62.4 million, up 48.5% year over year, while the reported loss per share was narrower than some estimates. However, revenue slightly missed other published estimates, making the quarter’s results mixed. SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift
- Neutral Sentiment: Cantor Fitzgerald lowered its price target to $10 from $15 but maintained an Overweight rating, reflecting continued analyst optimism alongside a more cautious valuation. Cantor Fitzgerald’s $10 Target
- Negative Sentiment: Investors focused on deteriorating profitability: non-GAAP gross margin fell to 50.3% from 59.3%, and the adjusted EBITDA loss widened. The move away from upfront licensing toward hosted, recurring contracts may also weigh on near-term recognized revenue. SoundHound Stock Slips Despite Beat as Adjusted Losses Widen
- Negative Sentiment: Persistent net losses, cash burn, and execution risks around the LivePerson acquisition remain concerns. Those issues have contributed to a steep recent sell-off despite strong year-over-year sales growth. SOUN Plunges 22.8% in the Past Month
Analyst Ratings Changes
Several equities analysts recently issued reports on SOUN shares. Yorkville Ives started coverage on SoundHound AI in a research report on Monday, October 5th. They issued an “in-line” rating and a $6.50 price target on the stock. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. Piper Sandler lowered their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Weiss Ratings raised SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Finally, DA Davidson cut their price target on SoundHound AI from $10.00 to $5.00 and set a “buy” rating for the company in a research note on Friday. 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.com, the company presently has a consensus rating of “Hold” and an average target price of $9.50.
Read Our Latest Research Report on SOUN
SoundHound AI Stock Down 3.5%
The company’s fifty day moving average price is $5.50 and its two-hundred day moving average price is $7.03. The firm has a market cap of $1.83 billion, a PE ratio of -19.57 and a beta of 2.89.
SoundHound AI (NASDAQ:SOUN – Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.12) by $0.07. The firm had revenue of $62.43 million during the quarter, compared to analysts’ expectations of $61.71 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm’s revenue for the quarter was up 48.5% on a year-over-year basis. During the same period in the prior year, the company posted ($0.03) earnings per share. As a group, analysts predict that SoundHound AI, Inc. will post -0.39 earnings per share for the current year.
Insiders Place Their Bets
In related news, SVP Majid Emami sold 38,730 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the senior vice president directly owned 834,253 shares in the company, valued at $5,280,821.49. The trade was a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through 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 stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the completion of the transaction, the insider owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. The trade was a 3.38% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders sold 288,758 shares of company stock valued at $1,828,598. Corporate insiders own 8.84% of the company’s stock.
Institutional Investors Weigh In On SoundHound AI
Several institutional investors have recently made changes to their positions in the stock. Swiss National Bank increased its holdings in shares of SoundHound AI by 3.7% in the 1st quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after purchasing an additional 27,300 shares in the last quarter. Calamos Advisors LLC acquired a new position in SoundHound AI during the third quarter worth about $4,195,000. California State Teachers Retirement System grew its position in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after buying an additional 87,998 shares during the period. AXQ Capital LP increased its holdings in SoundHound AI by 395.6% in the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after buying an additional 203,345 shares in the last quarter. Finally, Themes Management Co LLC increased its holdings in SoundHound AI by 86.5% in the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after buying an additional 88,820 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.
SoundHound AI Company Profile
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.
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