SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.6% on Insider Selling

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) traded down 3.6% during trading on Tuesday after an insider sold shares in the company. The company traded as low as $10.02 and last traded at $10.04. 21,680,022 shares were traded during mid-day trading, a decline of 50% from the average session volume of 43,115,602 shares. The stock had previously closed at $10.41.

Specifically, CTO Timothy Stonehocker sold 31,329 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $353,391.12. Following the completion of the sale, the chief technology officer owned 575,976 shares of the company’s stock, valued at approximately $6,497,009.28. This trade represents a 5.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Michael Zagorsek sold 73,406 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the sale, the chief operating officer directly owned 1,787,459 shares of the company’s stock, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In other news, CFO Nitesh Sharan sold 60,780 shares of SoundHound AI stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the transaction, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. This trade represents a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Wall Street Analysts Forecast Growth

SOUN has been the subject of several recent analyst reports. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Wedbush reissued an “outperform” rating and issued a $16.00 price target on shares of SoundHound AI in a report on Thursday, September 11th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Tuesday, October 14th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. Finally, HC Wainwright raised their price objective on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a report on Thursday, October 16th. Two investment analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, SoundHound AI currently has an average rating of “Moderate Buy” and an average price target of $17.07.

SoundHound AI News Summary

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

• Positive Sentiment: Cantor Fitzgerald upgraded SoundHound to overweight, citing progress on voice and conversational-AI services — a near‑term catalyst that can attract institutional flows. Read More.
• Positive Sentiment: MarketBeat named SOUN one of three “application‑layer” AI pure plays, highlighting the Amelia acquisition, projected revenue scale and management’s roadmap to break‑even — supportive for longer‑term fundamentals. Read More.
• Positive Sentiment: Several research firms have recently raised ratings/targets (examples include upgrades/target bumps from Cantor Fitzgerald, HC Wainwright, Piper Sandler and Ladenburg) — analyst momentum that can underpin buying interest. Read More.
• Neutral Sentiment: Zacks flags significant automotive headwinds (tariffs, OEM softness) but says rising enterprise AI adoption could offset some pressure into 2026 — a mixed catalyst that keeps outcomes uncertain. Read More.
• Neutral Sentiment: The Motley Fool / other thematic pieces highlight the long‑term opportunity in voice AI and enterprise agents but are thematic (longer‑horizon) rather than immediate catalysts. Read More.
• Neutral Sentiment: Headline-driven sector selling (coverage grouping SoundHound with other tech names trading down) provides context for intraday weakness but is not company-specific bad news. Read More.
• Negative Sentiment: Large, concentrated insider selling by executives this week is a clear negative for near‑term sentiment: CEO Keyvan Mohajer (144,326 shares), CFO Nitesh Sharan (60,780), COO Michael Zagorsek (73,406), CTO Timothy Stonehocker (31,329 + smaller sale) and others reported material sales in the $10.66–$11.28 range — increasing supply and signaling potential cash/liquidity moves by insiders. Read More.
• Negative Sentiment: Additional director-level sales (e.g., Diana Sroka) add to the aggregate insider selling narrative. Smaller individual sales amplify the perception of insider liquidity-taking. Read More.

SoundHound AI Trading Down 3.6%

The firm’s 50 day moving average price is $13.21 and its 200-day moving average price is $13.47. The company has a market cap of $4.22 billion, a P/E ratio of -11.95 and a beta of 2.63.

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

Hedge Funds Weigh In On SoundHound AI

Institutional investors have recently modified their holdings of the business. Northern Trust Corp increased its position in SoundHound AI by 2.5% during the 1st quarter. Northern Trust Corp now owns 2,979,011 shares of the company’s stock worth $24,190,000 after buying an additional 72,766 shares during the period. Y Intercept Hong Kong Ltd acquired a new position in shares of SoundHound AI in the second quarter valued at about $3,696,000. First Manhattan CO. LLC. acquired a new position in shares of SoundHound AI in the first quarter valued at about $985,000. Osaic Holdings Inc. increased its position in SoundHound AI by 14.0% during the second 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. Finally, Sigma Planning Corp raised its stake in SoundHound AI by 238.1% in the 2nd quarter. Sigma Planning Corp now owns 106,661 shares of the company’s stock worth $1,144,000 after purchasing an additional 75,113 shares in the last quarter. Institutional investors own 19.28% of the company’s stock.

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.