SoundHound AI (NASDAQ:SOUN) Trading Down 2.5% – Should You Sell?

31 Jan 2026, 04:20 by Sarita Garza · The Markets Daily

Shares of SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) fell 2.5% during mid-day trading on Wednesday . The company traded as low as $9.63 and last traded at $9.69. 20,851,040 shares were traded during trading, a decline of 22% from the average session volume of 26,745,699 shares. The stock had previously closed at $9.94.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on SOUN shares. DA Davidson set a $14.00 price target on shares of SoundHound AI in a research note on Thursday, January 8th. Zacks Research cut shares of SoundHound AI from a “hold” rating to a “strong sell” rating in a research report on Monday, January 12th. Piper Sandler decreased their price target on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their target price for the company from $13.00 to $15.00 in a research report on Friday, December 12th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $16.07.

Read Our Latest Report on SoundHound AI

SoundHound AI Trading Down 6.8%

The stock’s 50-day moving average is $11.07 and its 200-day moving average is $13.43. The stock has a market cap of $3.55 billion, a price-to-earnings ratio of -10.07 and a beta of 2.65.

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

Insiders Place Their Bets

In other news, CTO Timothy Stonehocker sold 29,676 shares of SoundHound AI stock in a transaction on Friday, January 9th. The stock was sold at an average price of $12.00, for a total transaction of $356,112.00. Following the transaction, the chief technology officer directly owned 544,179 shares in the company, valued at approximately $6,530,148. This trade represents a 5.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $685,598.40. Following the transaction, the chief financial officer directly owned 1,705,148 shares in the company, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 462,265 shares of company stock worth $5,216,518. 9.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently modified their holdings of SOUN. Y Intercept Hong Kong Ltd purchased a new stake in shares of SoundHound AI in the second quarter valued at $3,696,000. Kieckhefer Group LLC lifted its stake in SoundHound AI by 47.2% in the 3rd quarter. Kieckhefer Group LLC now owns 259,000 shares of the company’s stock worth $4,165,000 after acquiring an additional 83,000 shares in the last quarter. Osaic Holdings Inc. boosted its position in SoundHound AI by 14.0% during the 2nd quarter. Osaic Holdings Inc. now owns 498,691 shares of the company’s stock worth $5,351,000 after acquiring an additional 61,212 shares during the period. Sigma Planning Corp boosted its position in SoundHound AI by 238.1% during the 2nd quarter. Sigma Planning Corp now owns 106,661 shares of the company’s stock worth $1,144,000 after acquiring an additional 75,113 shares during the period. Finally, Fluent Financial LLC purchased a new position in SoundHound AI during the 3rd quarter valued at about $1,083,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

(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.