SoundHound AI (NASDAQ:SOUN) Rating Increased to Sell at Wall Street Zen

Wall Street Zen upgraded shares of SoundHound AI (NASDAQ:SOUN) from a strong sell rating to a sell rating in a research note released on Saturday.

A number of other brokerages have also recently weighed in on SOUN. DA Davidson reduced their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Piper Sandler reduced their price target on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday, August 6th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday, June 15th. One analyst has rated the stock with a Strong Buy rating, four have issued 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 presently has an average rating of “Moderate Buy” and a consensus target price of $13.60.

SoundHound AI Stock Performance

Shares of NASDAQ SOUN opened at $7.43 on Friday. The stock’s 50-day simple moving average is $6.71 and its 200-day simple moving average is $7.49. The firm has a market capitalization of $3.22 billion, a PE ratio of -19.55 and a beta of 2.64. SoundHound AI has a fifty-two week low of $5.65 and a fifty-two week high of $22.17.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. The firm had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.19) earnings per share. On average, sell-side analysts forecast that SoundHound AI will post -0.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other SoundHound AI news, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the transaction, the chief operating officer owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares of the company’s stock, valued at approximately $14,526,388.02. This trade represents a 6.10% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 268,022 shares of company stock worth $1,999,444. Corporate insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Hollencrest Capital Management grew its holdings in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after acquiring an additional 2,400 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its position in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after purchasing an additional 1,544 shares in the last quarter. Danske Bank A S purchased a new stake in SoundHound AI during the third quarter worth $26,000. Finally, SHP Wealth Management acquired a new stake in SoundHound AI in the fourth quarter valued at $27,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: SoundHound’s record second-quarter results exceeded expectations, with revenue rising 45% year over year to $61.9 million and adjusted losses narrowing significantly. Management also raised its 2026 revenue outlook, strengthening the growth narrative. SoundHound’s Q2 Results Fuel Estimate Hikes: Is the Stock a Buy Now?
• Positive Sentiment: Rapid adoption of the OASYS agentic-AI platform is reportedly shortening sales cycles and accelerating customer onboarding, offering a potential catalyst for sustained enterprise growth. 5 Must-Read Analyst Questions From SoundHound AI’s Q2 Earnings Call
• Positive Sentiment: Analyst optimism remains strong: the average Wall Street price target is approximately $12.71, while one prominent analyst cited potential gains of about 167% if the market begins valuing SoundHound more in line with its revenue growth. SoundHound Shed a Quarter of Its Value Over 12 Months: 167% Gains To Follow Says A Prominent Analyst
• Neutral Sentiment: Northland Securities improved its full-year 2026 and 2027 EPS forecasts, but still expects SoundHound to remain unprofitable, with estimated losses of $0.38 per share in 2026 and $0.32 in 2027.
• Negative Sentiment: Investors remain concerned about ongoing cash burn, negative margins and the company’s premium valuation. SoundHound’s strong revenue growth has not yet translated into profits, creating pressure for execution to remain excellent.
• Negative Sentiment: Northland lowered its fourth-quarter 2026 EPS forecast to a $0.11 loss from a $0.10 loss, underscoring that profitability remains a longer-term objective despite better growth estimates.

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.