SoundHound AI (NASDAQ:SOUN) Shares Down 1.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 1.4% on Thursday. The stock traded as low as $3.88 and last traded at $4.26. 27,074,916 shares traded hands during mid-day trading, an increase of 3% from the average session volume of 26,210,928 shares. The stock had previously closed at $4.32.

Key SoundHound AI News

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

• Positive Sentiment: SoundHound reported record Q3 revenue of $62.43 million, above the $61.71 million analyst estimate, and an adjusted loss of $0.05 per share versus the expected $0.12 loss. The company also said it expects sustained adjusted EBITDA profitability in the second half of 2027. SoundHound AI Q3 results
• Positive Sentiment: A new LG Electronics partnership will bring restaurant ordering to an initial base of about 20 million LG smart TVs in the U.S., creating a potential commerce channel for SoundHound’s voice and AI services. SoundHound and LG partnership
• Positive Sentiment: SoundHound expanded its Ultraviolette partnership, with its voice AI co-pilot planned across the electric motorcycle maker’s global lineup. The expansion could broaden adoption of SoundHound’s in-vehicle voice technology. SoundHound and Ultraviolette expansion
• Negative Sentiment: Despite beating estimates, SoundHound remains unprofitable: its reported net margin was negative 67.45% and return on equity was negative 30.22%. The 2027 adjusted EBITDA profitability target underscores that investors may still have to wait for sustained profitability. SoundHound financial results

Analyst Ratings Changes

A number of equities research analysts recently commented on SOUN shares. DA Davidson dropped their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Yorkville Ives started coverage on shares of SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target on the stock. Wall Street Zen upgraded shares of SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. Piper Sandler cut their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, September 22nd. Finally, Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, October 15th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $11.50.

SoundHound AI Stock Performance

The stock has a market cap of $1.89 billion, a price-to-earnings ratio of -11.21 and a beta of 2.89. The business’s 50 day moving average is $5.62 and its 200-day moving average is $7.10.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same period in the prior year, the business posted ($0.19) earnings per share. The firm’s revenue for the quarter was up 45.0% on a year-over-year basis. Sell-side analysts anticipate that SoundHound AI, Inc. will post -0.39 EPS for the current fiscal year.

Insider Activity at SoundHound AI

In other SoundHound AI news, insider James Hom sold 38,730 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the completion of the transaction, the insider owned 1,105,555 shares of the company’s stock, valued at $6,998,163.15. This represents a 3.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $869,045.70. Following the transaction, the chief executive officer directly owned 3,684,947 shares of the company’s stock, valued at $23,325,714.51. The trade was a 3.59% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Swiss National Bank boosted its position in shares of SoundHound AI by 3.7% during the 1st quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after acquiring an additional 27,300 shares during the last quarter. Calamos Advisors LLC acquired a new stake in SoundHound AI during the third quarter worth about $4,195,000. California State Teachers Retirement System increased its position in SoundHound AI by 25.0% during the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after purchasing an additional 87,998 shares during the last quarter. AXQ Capital LP raised its stake in SoundHound AI by 395.6% during the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after purchasing an additional 203,345 shares during the period. Finally, Themes Management Co LLC raised its stake in SoundHound AI by 86.5% during the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock worth $1,315,000 after purchasing an additional 88,820 shares during the period. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.