SoundHound AI (NASDAQ:SOUN) Shares Down 1.5% – What’s Next?
by Amy Steele · The Cerbat GemSoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) fell 1.5% during mid-day trading on Thursday . The stock traded as low as $8.17 and last traded at $8.32. 22,530,434 shares changed hands during trading, a decline of 18% from the average session volume of 27,453,338 shares. The stock had previously closed at $8.45.
SoundHound AI News Roundup
Here are the key news stories impacting SoundHound AI this week:
- Positive Sentiment: SoundHound’s pipeline is reportedly expanding, with commentary pointing to strong Q1 revenue growth of 52% and management’s efforts to accelerate enterprise AI adoption through OASYS and the planned LivePerson deal. Why SoundHound’s Pipeline Growth Matters for the SOUN Stock
- Positive Sentiment: Coverage around OASYS says the platform can help AI systems improve themselves, which could strengthen SoundHound’s technology story and support long-term growth expectations. SoundHound AI OASYS powers AI that can improve itself
- Positive Sentiment: Several bullish articles argue SoundHound remains a high-upside “moonshot” AI name, suggesting some investors are still focused on its agentic AI opportunity despite volatility. How SoundHound AI (SOUN) Is Expanding Its Agentic AI Case
- Neutral Sentiment: A shareholder/analyst call transcript may keep attention on management’s execution and guidance, but it does not appear to add a major new catalyst on its own. SoundHound AI, Inc. (SOUN) Shareholder/Analyst Call Prepared Remarks Transcript
- Neutral Sentiment: Some commentary remains constructive even after Northland trimmed its price target to $12 from $14 while keeping an Outperform rating, which signals caution but not a bearish thesis change. Northland Lowers SoundHound (SOUN) Price Target, Keeps Outperform Rating
- Negative Sentiment: Heavy short interest remains a concern, with reported short interest around 40.75% of float, which can amplify selling pressure and investor skepticism around the stock. How SoundHound AI (SOUN) Is Expanding Its Agentic AI Case
Wall Street Analyst Weigh In
Several research analysts recently commented on the company. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. DA Davidson reiterated a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a report on Wednesday, April 22nd. Piper Sandler reissued a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $14.93.
Check Out Our Latest Analysis on SOUN
SoundHound AI Trading Down 1.8%
The stock has a market capitalization of $3.45 billion, a PE ratio of -17.38 and a beta of 2.58. The business’s 50 day moving average is $7.59 and its 200 day moving average is $9.50.
SoundHound AI (NASDAQ:SOUN – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.The business’s revenue for the quarter was up 51.7% compared to the same quarter last year. During the same period last year, the company earned ($0.06) earnings per share. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current year.
Insider Activity
In other news, SVP Majid Emami sold 31,019 shares of the stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $210,619.01. Following the sale, the senior vice president directly owned 501,826 shares in the company, valued at approximately $3,407,398.54. This represents a 5.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The stock was sold at an average price of $6.79, for a total value of $298,943.33. Following the sale, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. 8.84% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its holdings in SoundHound AI by 16.4% during 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 in the last quarter. Morgan Stanley boosted its position in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after buying an additional 2,917,280 shares during the period. UBS Group AG grew its stake in SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after acquiring an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC increased its position in shares of SoundHound AI by 2,259.7% during the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock worth $21,929,000 after acquiring an additional 2,106,298 shares during the period. Finally, Jump Financial LLC purchased a new position in shares of SoundHound AI during the third quarter worth approximately $21,679,000. 19.28% of the stock is currently owned by institutional investors.
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.