SoundHound AI (NASDAQ:SOUN) Trading Down 3.6% on Insider Selling

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 3.6% during trading on Tuesday following insider selling activity. The company traded as low as $10.02 and last traded at $10.04. Approximately 21,680,022 shares changed hands during trading, a decline of 50% from the average daily volume of 43,115,602 shares. The stock had previously closed at $10.41.

Specifically, CTO Timothy Stonehocker sold 31,329 shares of SoundHound AI stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $353,391.12. Following the completion of the sale, the chief technology officer directly owned 575,976 shares in the company, valued at approximately $6,497,009.28. The trade was a 5.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $828,019.68. Following the sale, the chief operating officer directly owned 1,787,459 shares in the company, valued at $20,162,537.52. This represents a 3.94% decrease in their position. The SEC filing for this sale provides additional information. In other news, CFO Nitesh Sharan sold 60,780 shares of the stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $685,598.40. Following the sale, the chief financial officer directly owned 1,705,148 shares of the company’s stock, valued at approximately $19,234,069.44. This represents a 3.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

SOUN has been the subject of a number of recent analyst reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Tuesday, October 14th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. HC Wainwright lifted their price target on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. DA Davidson reissued a “buy” rating and set a $17.00 price target on shares of SoundHound AI in a report on Tuesday, November 18th. Finally, Wedbush reaffirmed an “outperform” rating and issued a $16.00 price objective on shares of SoundHound AI in a research note on Thursday, September 11th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $17.07.

SoundHound AI News Summary

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

• Positive Sentiment: Cantor Fitzgerald upgraded SoundHound to overweight, citing progress on voice and conversational-AI services — a near?term catalyst that can attract institutional flows. Read More.
• Positive Sentiment: MarketBeat named SOUN one of three “application?layer” AI pure plays, highlighting the Amelia acquisition, projected revenue scale and management’s roadmap to break?even — supportive for longer?term fundamentals. Read More.
• Positive Sentiment: Several research firms have recently raised ratings/targets (examples include upgrades/target bumps from Cantor Fitzgerald, HC Wainwright, Piper Sandler and Ladenburg) — analyst momentum that can underpin buying interest. Read More.
• Neutral Sentiment: Zacks flags significant automotive headwinds (tariffs, OEM softness) but says rising enterprise AI adoption could offset some pressure into 2026 — a mixed catalyst that keeps outcomes uncertain. Read More.
• Neutral Sentiment: The Motley Fool / other thematic pieces highlight the long?term opportunity in voice AI and enterprise agents but are thematic (longer?horizon) rather than immediate catalysts. Read More.
• Neutral Sentiment: Headline-driven sector selling (coverage grouping SoundHound with other tech names trading down) provides context for intraday weakness but is not company-specific bad news. Read More.
• Negative Sentiment: Large, concentrated insider selling by executives this week is a clear negative for near?term sentiment: CEO Keyvan Mohajer (144,326 shares), CFO Nitesh Sharan (60,780), COO Michael Zagorsek (73,406), CTO Timothy Stonehocker (31,329 + smaller sale) and others reported material sales in the $10.66–$11.28 range — increasing supply and signaling potential cash/liquidity moves by insiders. Read More.
• Negative Sentiment: Additional director-level sales (e.g., Diana Sroka) add to the aggregate insider selling narrative. Smaller individual sales amplify the perception of insider liquidity-taking. Read More.

SoundHound AI Trading Down 3.6%

The stock’s 50-day moving average price is $13.21 and its 200-day moving average price is $13.47. The stock has a market cap of $4.22 billion, a price-to-earnings ratio of -11.95 and a beta of 2.63.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.09) by $0.06. The business had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. SoundHound AI’s quarterly revenue was up 67.6% on a year-over-year basis. During the same quarter last year, the firm earned ($0.04) earnings per share. As a group, analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Institutional Trading of SoundHound AI

Several large investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its position in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock valued at $698,798,000 after buying an additional 6,132,648 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in SoundHound AI by 84.2% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,973,728 shares of the company’s stock valued at $40,390,000 after acquiring an additional 2,274,105 shares in the last quarter. Jump Financial LLC purchased a new stake in shares of SoundHound AI in the 3rd quarter valued at about $21,679,000. HRT Financial LP purchased a new stake in SoundHound AI during the second quarter valued at about $11,914,000. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of 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 acquiring an additional 1,085,473 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.