SoundHound AI (NASDAQ:SOUN) Price Target Lowered to $10.00 at DA Davidson

SoundHound AI (NASDAQ:SOUN) had its target price reduced by equities researchers at DA Davidson from $12.00 to $10.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. DA Davidson’s price objective points to a potential upside of 41.24% from the stock’s previous close.

A number of other research firms have also recently commented on SOUN. Piper Sandler cut their price objective on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research report on Thursday. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $14.07.

SoundHound AI Stock Up 10.1%

Shares of SOUN stock traded up $0.65 during mid-day trading on Thursday, hitting $7.08. 88,807,245 shares of the stock were exchanged, compared to its average volume of 28,796,348. SoundHound AI has a 52-week low of $5.65 and a 52-week high of $22.17. The company has a market cap of $3.06 billion, a PE ratio of -15.06 and a beta of 2.64. The firm has a fifty day moving average of $6.84 and a 200 day moving average of $7.63.

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

Insider Buying and Selling at SoundHound AI

In other news, SVP Majid Emami sold 28,843 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the transaction, the senior vice president owned 472,983 shares in the company, valued at $3,528,453.18. This trade represents a 5.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the sale, the chief executive officer directly owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 268,022 shares of company stock valued at $1,999,444. 8.84% of the stock is owned by insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. Hollencrest Capital Management lifted its stake 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 worth $25,000 after buying an additional 2,400 shares in the last quarter. Northwestern Mutual Wealth Management Co. grew its stake in SoundHound AI by 83.1% during 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 in the last quarter. Dogwood Wealth Management LLC grew its stake in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares in the last quarter. Danske Bank A S acquired a new stake in SoundHound AI in the 3rd quarter valued at about $26,000. Finally, SHP Wealth Management purchased a new position in SoundHound AI in the 4th quarter worth approximately $27,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.

More SoundHound AI News

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

• Positive Sentiment: SoundHound reported record Q2 revenue of $61.9 million, up 45% year over year and well above analyst expectations near $52–$53 million. Gross profit climbed 67.6% to $27.9 million, indicating improving scale and margins. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: The company’s adjusted loss was smaller than expected, while management cited strong demand for its OASYS enterprise AI platform. SoundHound raised its FY 2026 revenue outlook to $230 million–$260 million, supporting the bullish growth narrative. SoundHound Q2 Earnings Beat on OASYS Demand
• Positive Sentiment: Heavy short interest—reported at approximately 42%—and unusually active call-option buying increased the potential for a short squeeze, helping amplify the post-earnings rally. The stock reached a two-month high on elevated trading volume.
• Neutral Sentiment: Wall Street’s response was broadly favorable, although analysts remain divided on valuation. Several previously published targets are above the current share price, but Piper Sandler lowered its target from $8 to $7 and maintained a neutral rating. SoundHound AI Soars as Wall Street Praises Results and Guidance
• Negative Sentiment: SoundHound remains unprofitable. The quarter included a GAAP loss of $0.10 per share, a $43.3 million operating loss, and $33.7 million of operating cash outflow, despite ending with $215.6 million in cash. Analysts have also flagged execution and operating weaknesses that could make the rally difficult to sustain. Why SoundHound’s Post-Earnings Rally May Be Unsustainable

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.