SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.8% – Still a Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded up 1.8% during trading on Wednesday . The stock traded as high as $11.30 and last traded at $11.28. 26,405,893 shares were traded during trading, a decline of 10% from the average session volume of 29,493,570 shares. The stock had previously closed at $11.08.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: SoundHound unveiled a new Vision AI capability that combines visual recognition with its voice stack — a strategic expansion aimed at deeper automotive integrations and new commerce use cases that could boost revenue per customer if it converts into OEM/dealer or retail deals. Vision AI article
• Neutral Sentiment: HC Wainwright trimmed its Q4 2025 EPS forecast slightly (from -$0.08 to -$0.09) but still rates SOUN a Buy with a $26 target — this is a modest near-term revision that leaves the upbeat long‑term thesis intact. HC Wainwright note (MarketBeat)
• Neutral Sentiment: Recent coverage and MarketBeat summaries show a mixed analyst landscape (targets ranging widely and a consensus “Moderate Buy”) and significant institutional holdings — these factors can amplify moves but are not a near-term catalyst by themselves. MarketBeat coverage
• Negative Sentiment: Zacks Research downgraded SOUN from Hold to Strong Sell, which is likely to pressure sentiment and could trigger short-term selling by momentum-driven funds. Zacks downgrade TickerReport
• Negative Sentiment: CTO Timothy Stonehocker sold 29,676 shares (avg $12.00) in early January — a material reduction in insider holdings that can be read negatively by investors monitoring insider activity; SEC filing available for verification. SEC filing

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. HC Wainwright lifted their price target on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a report on Thursday, October 16th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday. Piper Sandler reduced their target price on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price target for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Finally, LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $16.07.

SoundHound AI Stock Performance

The company has a market capitalization of $4.74 billion, a price-to-earnings ratio of -13.43 and a beta of 2.65. The business’s 50-day simple moving average is $11.73 and its 200-day simple moving average is $13.57.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates 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 business had revenue of $42.05 million during the quarter, compared to the consensus estimate of $40.48 million. During the same period in the previous year, the firm posted ($0.04) earnings per share. SoundHound AI’s revenue for the quarter was up 67.6% compared to the same quarter last year. On average, analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, CEO Keyvan Mohajer sold 144,326 shares of the stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $1,627,997.28. Following the transaction, the chief executive officer owned 2,198,287 shares of the company’s stock, valued at $24,796,677.36. This represents a 6.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Michael Zagorsek sold 73,406 shares of the firm’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $828,019.68. Following the completion of the transaction, the chief operating officer owned 1,787,459 shares in the company, valued at $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 462,265 shares of company stock worth $5,216,518. 9.17% of the stock is owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

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

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.