SoundHound AI (NASDAQ:SOUN) Trading Up 3.1% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) shares were up 3.1% on Tuesday . The stock traded as high as $6.85 and last traded at $6.69. 32,502,359 shares changed hands during trading, an increase of 19% from the average daily volume of 27,395,379 shares. The stock had previously closed at $6.49.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound announced it was named a Leader in Gartner’s 2026 Magic Quadrant for Conversational AI Platforms, which supports the company’s credibility in a competitive AI market and could help sentiment around future customer adoption. SoundHound AI Named a Leader in the 2026 Gartner Magic Quadrant for Conversational AI Platforms
• Positive Sentiment: The company’s pending LivePerson acquisition appears to be advancing, with an amended merger agreement now in place. Investors may view this as a sign SoundHound is still expanding its AI platform through M&A. SoundHound AI (SOUN) and LivePerson Sign Amended Merger Agreement
• Neutral Sentiment: Recent commentary continues to highlight SoundHound as a low-priced AI stock with notable analyst and hedge fund interest, but it remains more of a watchlist-style theme than a direct catalyst. SoundHound AI (SOUN) and LivePerson Sign Amended Merger Agreement
• Negative Sentiment: Multiple articles note that SOUN’s sharp year-to-date decline reflects investor worries about persistent losses and cash burn, despite revenue growth. That pressure is likely weighing on the stock more than the positive AI partnership/news flow. SoundHound Plunges 35% YTD: Should You Buy, Hold or Sell the Stock?
• Negative Sentiment: Technical coverage also says SoundHound is hovering near key support after a recent drop, suggesting traders are watching for further downside if buyers do not step in. SoundHound AI (SOUN) Dips 2.18% as It Hovers Near Key Support – Wyckoff Spring

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, SoundHound AI presently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The firm has a market capitalization of $2.90 billion, a PE ratio of -14.23 and a beta of 2.62. The stock’s 50-day simple moving average is $7.60 and its 200-day simple moving average is $8.18.

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

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 126,540 shares of the company’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 transaction of $943,988.40. Following the transaction, the chief executive officer owned 1,947,237 shares in the company, valued at approximately $14,526,388.02. This represents a 6.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Timothy Stonehocker sold 18,802 shares of the 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 $140,262.92. Following the completion of the transaction, the chief technology officer directly owned 502,290 shares of the company’s stock, valued at $3,747,083.40. This represents a 3.61% decrease in their position. 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. Insiders sold 268,022 shares of company stock valued at $1,999,444 over the last quarter. 8.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently made changes to their positions in the company. Handelsbanken Fonder AB grew its stake in SoundHound AI by 17.4% in the second quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company’s stock worth $802,000 after purchasing an additional 18,400 shares during the period. Focus Financial Network Inc. lifted its position in SoundHound AI by 21.4% during the second quarter. Focus Financial Network Inc. now owns 48,229 shares of the company’s stock valued at $312,000 after buying an additional 8,516 shares during the period. IFC & Insurance Marketing Inc. boosted its holdings in shares of SoundHound AI by 17.9% during the 2nd quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company’s stock valued at $273,000 after buying an additional 6,427 shares in the last quarter. Hennion & Walsh Asset Management Inc. grew its position in shares of SoundHound AI by 19.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company’s stock worth $768,000 after buying an additional 19,133 shares during the period. Finally, Empowered Funds LLC grew its position in shares of SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock worth $95,000 after buying an additional 2,277 shares during the period. 19.28% of the stock is currently owned by institutional investors.

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.