SoundHound AI (NASDAQ:SOUN) COO Michael Zagorsek Sells 64,994 Shares of Stock

SoundHound AI, Inc. (NASDAQ:SOUN) COO Michael Zagorsek sold 64,994 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the sale, the chief operating officer owned 1,669,497 shares in the company, valued at $12,454,447.62. The trade was a 3.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Michael Zagorsek also recently made the following trade(s):

• On Friday, March 20th, Michael Zagorsek sold 52,968 shares of SoundHound AI stock. The stock was sold at an average price of $6.79, for a total value of $359,652.72.

SoundHound AI Stock Down 1.0%

Shares of SOUN opened at $6.96 on Thursday. SoundHound AI, Inc. has a 52 week low of $5.83 and a 52 week high of $22.17. The company has a market capitalization of $3.01 billion, a price-to-earnings ratio of -14.81 and a beta of 2.56. The stock’s 50-day moving average price is $7.94 and its 200-day moving average price is $8.81.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) 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 company had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. During the same quarter in the previous year, the company earned ($0.06) EPS. The firm’s quarterly revenue was up 51.7% compared to the same quarter last year. As a group, equities analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its holdings in shares of SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Rakuten Securities Inc. raised its holdings in shares of SoundHound AI by 877.9% during the fourth quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after acquiring an additional 299,492 shares during the last quarter. Clear Street Group Inc. acquired a new position in shares of SoundHound AI during the third quarter valued at approximately $12,944,000. UBS Group AG raised its holdings 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. Finally, Mitsubishi UFJ Asset Management Co. Ltd. raised its holdings in shares of SoundHound AI by 140.5% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock valued at $2,826,000 after acquiring an additional 155,743 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on SOUN shares. HC Wainwright lowered their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research note on Monday. Piper Sandler reaffirmed a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. DA Davidson reaffirmed a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One research 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 company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

Key Stories Impacting SoundHound AI

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

• Neutral Sentiment: Several SoundHound executives and insiders sold shares on June 15, including CEO Keyvan Mohajer, COO Michael Zagorsek, CTO Timothy Stonehocker, SVP Majid Emami, and insider James Ming Hom. The company said the sales were made to cover tax withholding obligations tied to vesting equity awards, which makes the transactions less concerning than open-market selling, but the size and number of sales can still weigh on sentiment.
• Neutral Sentiment: Analysts and commentary pieces continue to highlight SoundHound’s strong growth story in conversational AI and the potential for enterprise adoption, with one bullish note pointing to a possible $500 million revenue target as a reason to view the stock as attractive.
• Neutral Sentiment: Other recent coverage has been more cautious, emphasizing that SOUN trades at a premium to the industry and may not be a clear bargain despite its growth prospects. That valuation debate is likely contributing to volatility.
• Negative Sentiment: Additional market coverage noted that SoundHound AI shares have been falling alongside other names in the sector, suggesting broader weakness in high-growth AI stocks is also pressuring the shares.

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.