SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.8% – Here’s Why

26 Dec 2025, 21:52 by Danessa Lincoln · The Markets Daily

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report)’s stock price dropped 1.8% during trading on Friday . The stock traded as low as $10.52 and last traded at $10.70. Approximately 17,722,981 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 43,298,633 shares. The stock had previously closed at $10.90.

Analyst Upgrades and Downgrades

SOUN has been the subject of several analyst reports. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. HC Wainwright boosted their price objective on SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research report on Thursday, October 16th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. DA Davidson reiterated a “buy” rating and issued a $17.00 price target on shares of SoundHound AI in a research note on Tuesday, November 18th. Finally, Wedbush reiterated an “outperform” rating and set a $16.00 price target on shares of SoundHound AI in a report on Thursday, September 11th. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $17.07.

Read Our Latest Stock Report on SOUN

SoundHound AI Stock Performance

The firm’s 50-day moving average price is $13.55 and its two-hundred day moving average price is $13.41. The firm has a market cap of $4.50 billion, a PE ratio of -12.74 and a beta of 2.63.

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

Insider Transactions at SoundHound AI

In other SoundHound AI news, VP Majid Emami sold 41,167 shares of the business’s stock in a transaction that occurred on Wednesday, October 8th. The stock was sold at an average price of $20.00, for a total value of $823,340.00. Following the completion of the sale, the vice president owned 608,186 shares in the company, valued at approximately $12,163,720. The trade was a 6.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Nitesh Sharan sold 60,376 shares of the firm’s stock in a transaction that occurred on Tuesday, October 14th. The stock was sold at an average price of $21.21, for a total transaction of $1,280,574.96. Following the transaction, the chief financial officer owned 1,765,928 shares in the company, valued at approximately $37,455,332.88. This trade represents a 3.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 292,064 shares of company stock valued at $5,904,921 over the last quarter. Company insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. raised its holdings in shares of SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares during the last quarter. Danske Bank A S purchased a new stake in SoundHound AI during the 3rd quarter valued at approximately $26,000. Advisors Asset Management Inc. lifted its position in SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after acquiring an additional 1,023 shares during the period. Investors Research Corp grew its stake in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after purchasing an additional 700 shares during the last quarter. Finally, AlphaQuest LLC acquired a new position in shares of SoundHound AI in the first quarter valued at approximately $32,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

About SoundHound AI

(Get Free Report)

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.