SoundHound AI (NASDAQ:SOUN) Stock Price Up 2.5% Following Analyst Upgrade

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 2.5% during mid-day trading on Wednesday after LADENBURG THALM/SH SH upgraded the stock to a strong-buy rating. The stock traded as high as $9.40 and last traded at $9.37. 29,051,199 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 27,373,082 shares. The stock had previously closed at $9.14.

SOUN has been the subject of several other reports. Piper Sandler reaffirmed a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Finally, DA Davidson reaffirmed a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research note on Wednesday, April 22nd. One 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 assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

Insider Activity

In related news, COO Michael Zagorsek sold 52,968 shares of the firm’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the sale, the chief operating officer owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. This trade represents a 2.96% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Keyvan Mohajer sold 124,510 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 transaction of $845,422.90. Following the completion of the sale, the chief executive officer owned 2,073,777 shares in the company, valued at $14,080,945.83. This represents a 5.66% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 307,973 shares of company stock valued at $2,091,110. Company insiders own 8.84% of the company’s stock.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: SoundHound posted record Q1 revenue of $44.2 million, up about 52% year over year, and exceeded revenue expectations, showing continued momentum in its voice AI business. SoundHound AI Reports Record Q1 Revenue of $44.2 Million, Up 52%
• Positive Sentiment: The company launched OASYS, a self-learning AI agent platform, which could expand SoundHound’s product offering and support longer-term growth. SoundHound AI (SOUN) Launches OASYS Self-Learning AI Agent Platform
• Positive Sentiment: SoundHound outlined 2027 revenue expectations of at least $350 million to $400 million after the planned LivePerson acquisition, suggesting management sees meaningful future scale. SoundHound outlines 2027 revenue of at minimum $350M-$400M following planned LivePerson acquisition
• Neutral Sentiment: Analysts remain broadly constructive, with at least one recent upgrade to strong-buy and commentary that the stock could have meaningful upside if execution improves. Wall Street Bulls Look Optimistic About SoundHound AI (SOUN): Should You Buy?
• Negative Sentiment: Despite the revenue beat, SoundHound missed earnings estimates and cited higher acquisition-related costs and vendor true-ups, which pressured margins and weighed on investor sentiment. SOUN Q1 Earnings Miss on Higher Costs, Revenue Beat, Stock Down
• Negative Sentiment: Investors also appear concerned that the planned LivePerson deal and broader acquisition strategy could continue to pressure earnings even as revenue grows. SoundHound’s stock falls as acquisitions weigh on earnings results

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Danske Bank A S purchased a new position in shares of SoundHound AI during the 3rd quarter worth $26,000. Northwestern Mutual Wealth Management Co. boosted its stake in shares of SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its stake in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after acquiring an additional 1,544 shares during the last quarter. SHP Wealth Management purchased a new position in shares of SoundHound AI during the 4th quarter worth $27,000. Finally, Bogart Wealth LLC boosted its stake in shares of SoundHound AI by 242.4% during the 3rd quarter. Bogart Wealth LLC now owns 2,825 shares of the company’s stock worth $45,000 after acquiring an additional 2,000 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Trading Down 7.8%

The firm has a market cap of $3.75 billion, a PE ratio of -18.89 and a beta of 2.58. The stock has a 50 day simple moving average of $7.57 and a 200-day simple moving average of $10.18.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.02). The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. SoundHound AI’s revenue for the quarter was up 59.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.05) EPS. On average, equities research analysts expect that SoundHound AI, Inc. will post -0.34 EPS for the current year.

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.