SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.4% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) rose 1.4% during trading on Monday . The company traded as high as $7.65 and last traded at $7.49. Approximately 21,925,263 shares traded hands during mid-day trading, a decline of 20% from the average daily volume of 27,522,338 shares. The stock had previously closed at $7.39.

SoundHound AI News Roundup

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

• Positive Sentiment: SoundHound was named the overall Leader in the 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers, earning top marks across every evaluated category. That recognition can bolster investor confidence in the company’s competitive position and product quality. SoundHound AI Named As Overall Leader in The 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers
• Positive Sentiment: Several analyst-focused articles highlighted upbeat Wall Street sentiment, with one note pointing to an average brokerage recommendation that leans toward a buy and another saying analysts see significant upside potential. That kind of coverage can support shares by reinforcing bullish expectations. Is SoundHound AI (SOUN) a Buy as Wall Street Analysts Look Optimistic? Wall Street Thinks This beaten Down AI Stock Could Easily Double From Here
• Neutral Sentiment: The company also announced it will participate in the D.A. Davidson 2026 Technology & Consumer Conference, giving management another chance to discuss strategy and growth prospects, but this is not usually a direct catalyst on its own. SoundHound AI to Participate in D.A. Davidson 2026 Technology & Consumer Conference
• Neutral Sentiment: One article discussed governance changes to the company’s bylaws, noting they could strengthen shareholder litigation rights and accountability. This is more of a governance development than a near-term operating catalyst. Is SoundHound AI (SOUN) Quietly Rewriting Its Governance To Shift The Investor-Litigation Balance?
• Negative Sentiment: A separate note on short interest showed no meaningful update in the reported data, so it does not appear to be a strong fresh catalyst, though SoundHound remains a volatile stock with sentiment-driven trading.

Analyst Upgrades and Downgrades

SOUN has been the topic of a number of research reports. HC Wainwright cut their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Piper Sandler reissued a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Finally, DA Davidson reissued a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Down 3.8%

The firm has a market capitalization of $2.92 billion, a price-to-earnings ratio of -14.36 and a beta of 2.56. The stock’s fifty day moving average is $7.89 and its two-hundred day moving average is $9.01.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The firm had revenue of $44.20 million for the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.SoundHound AI’s quarterly revenue was up 51.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.06) earnings per share. As a group, analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In related news, CEO Keyvan Mohajer sold 124,510 shares of the business’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at approximately $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Nitesh Sharan sold 44,027 shares of the company’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the transaction, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 307,973 shares of company stock valued at $2,091,110 in the last 90 days. Company insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. Hollencrest Capital Management increased its holdings in shares of SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after purchasing an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased 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 purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC increased its holdings in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the last quarter. Danske Bank A S acquired a new position in shares of SoundHound AI in the third quarter valued at $26,000. Finally, SHP Wealth Management acquired a new position in shares of SoundHound AI in the fourth quarter valued at $27,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

About SoundHound AI

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.