SoundHound AI (NASDAQ:SOUN) Sets New 12-Month Low – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $4.03 and last traded at $4.0150, with a volume of 5,079,951 shares trading hands. The stock had previously closed at $4.32.

More 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 research analysts have recently commented on the stock. Cantor Fitzgerald dropped their price target on shares of SoundHound AI from $15.00 to $10.00 and set an “overweight” rating on the stock in a research note on Friday. Oppenheimer reaffirmed a “market perform” rating on shares of SoundHound AI in a research note on Friday. Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Piper Sandler lowered their target price on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. Finally, DA Davidson reduced their price objective on shares of SoundHound AI from $10.00 to $5.00 and set a “buy” rating for the company in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI currently has an average rating of “Hold” and a consensus target price of $9.50.

SoundHound AI Trading Down 3.5%

The company has a market cap of $1.83 billion, a price-to-earnings ratio of -19.57 and a beta of 2.89. The company has a fifty day moving average price of $5.50 and a two-hundred day moving average price of $7.03.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, November 5th. The company reported ($0.05) EPS for the quarter, beating analysts’ consensus estimates 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 analyst estimates of $61.71 million. During the same period in the prior year, the company posted ($0.03) earnings per share. SoundHound AI’s revenue was up 48.5% on a year-over-year basis. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.39 EPS for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, insider James Hom sold 38,730 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. This trade represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of SoundHound AI stock in a transaction that occurred on Tuesday, September 15th. The shares were 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 SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 288,758 shares of company stock valued at $1,828,598 in the last 90 days. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Calamos Advisors LLC acquired a new position in SoundHound AI during the 3rd quarter worth about $4,195,000. AXQ Capital LP raised its position in SoundHound AI by 395.6% in the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after purchasing an additional 203,345 shares during the last quarter. Corient Private Wealth LP raised its position in SoundHound AI by 777.2% in the 2nd quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock worth $1,144,000 after purchasing an additional 156,612 shares during the last quarter. Kestra Private Wealth Services LLC acquired a new position in SoundHound AI during the 3rd quarter worth $671,000. Finally, Themes Management Co LLC lifted its holdings in 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 buying an additional 88,820 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.