SoundHound AI (NASDAQ:SOUN) Shares Down 2.6% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded down 2.6% during mid-day trading on Friday . The stock traded as low as $5.86 and last traded at $5.90. 14,738,006 shares changed hands during trading, a decline of 45% from the average session volume of 27,032,609 shares. The stock had previously closed at $6.06.

More SoundHound AI News

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

• Positive Sentiment: Aragon Research named SoundHound a leader in its 2026 Globe for Agent Platforms — a third‑party endorsement that can help enterprise sales and positioning in conversational/agentic AI. Aragon Research Globe™ Leader
• Positive Sentiment: Industry/features highlight SoundHound’s large long‑term upside in voice/agentic AI, reinforcing the growth narrative for patient investors. These pieces can support longer‑horizon interest despite near‑term volatility. Fool Feature
• Neutral Sentiment: Brokerage coverage still shows a sizable upside consensus target (~$14.93), providing a reference point versus current trading levels but not an immediate catalyst. Consensus Target $14.93
• Negative Sentiment: Significant, clustered insider selling: multiple senior executives (CFO Nitesh Sharan, COO Michael Zagorsek, CTO Timothy Stonehocker, SVP Majid Emami, others) sold large blocks in mid‑March near ~$6.79 — such coordinated sales often increase supply and spook investors. Representative filings/reports: Executive Sale — Zagorsek and CFO Sale — InsiderTrades
• Negative Sentiment: Reported one‑day share decline and continued short‑term selling pressure: market write‑ups flagged a larger intraday fall (reported ~‑6.5% on Mar. 26), signaling downside momentum. Yahoo / Zacks Price Drop
• Negative Sentiment: Sector/competition and negative media: AI assistant feature rollouts (e.g., Anthropic/Claude device control) and high‑profile criticism (Jim Cramer calling the company a “continual money loser”) have been cited as contributors to selling across AI names, including SOUN. Sector Pressure / Yahoo Jim Cramer Commentary

Wall Street Analyst Weigh In

Several analysts have weighed in on SOUN shares. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Finally, DA Davidson set a $14.00 target price on shares of SoundHound AI in a research report on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Down 2.6%

The company has a market cap of $2.49 billion, a P/E ratio of -117.98 and a beta of 2.65. The company’s fifty day moving average is $8.29 and its 200 day moving average is $12.12.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period in the previous year, the firm posted ($0.05) earnings per share. The firm’s revenue for the quarter was up 59.4% on a year-over-year basis. Analysts anticipate that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling

In related news, SVP Majid Emami sold 31,019 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $210,619.01. Following the completion of the sale, the senior vice president directly owned 501,826 shares in the company, valued at $3,407,398.54. This represents a 5.82% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider James Ming Hom sold 31,019 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 $210,619.01. Following the transaction, the insider owned 772,364 shares in the company, valued at approximately $5,244,351.56. The trade was a 3.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 337,649 shares of company stock worth $2,447,222 in the last 90 days. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SOUN. Vanguard Group Inc. raised its holdings in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC grew its holdings in SoundHound AI by 3.1% in the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after acquiring an additional 273,097 shares during the last quarter. Morgan Stanley increased its position in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after acquiring an additional 2,917,280 shares during the period. State Street Corp increased its position in shares of SoundHound AI by 0.9% in the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock valued at $86,652,000 after acquiring an additional 80,908 shares during the period. Finally, UBS Group AG raised its stake in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during 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.