SoundHound AI, Inc. (NASDAQ:SOUN) Stock Has Average Target Price of $11.50

SoundHound AI, Inc. (NASDAQ:SOUN) has received an average recommendation of “Hold” from the nine research firms that are covering the firm, MarketBeat reports. One investment analyst has rated the stock with a sell rating, four have issued a hold rating, three have issued a buy rating and one has issued a strong buy rating on the company. The average 12-month target price among brokerages that have issued a report on the stock in the last year is $9.50.

Several equities analysts have recently issued reports on the stock. DA Davidson cut their price objective on shares of SoundHound AI from $10.00 to $5.00 and set a “buy” rating on the stock in a report on Friday. Cantor Fitzgerald lowered their target price on shares of SoundHound AI from $15.00 to $10.00 and set an “overweight” rating for the company in a research note on Friday. Yorkville Ives assumed coverage on shares of SoundHound AI in a research note on Monday, October 5th. They set an “in-line” rating and a $6.50 price target on the stock. Weiss Ratings raised shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Finally, Piper Sandler lowered their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research note on Tuesday, September 22nd.

Insider Transactions at SoundHound AI

In related news, COO Michael Zagorsek sold 71,113 shares of the firm’s stock in a transaction on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. This trade represents a 2.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider James Hom sold 38,730 shares of SoundHound AI stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the insider directly owned 1,105,555 shares of the company’s stock, valued at approximately $6,998,163.15. This represents a 3.38% 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. Insiders sold 288,758 shares of company stock valued at $1,828,598 in the last quarter. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of institutional investors and hedge funds have recently modified their holdings of the company. California State Teachers Retirement System lifted its stake 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. Themes Management Co LLC increased its stake in SoundHound AI by 86.5% in the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after purchasing an additional 88,820 shares during the last quarter. Corient Private Wealth LP increased its stake in SoundHound AI by 777.2% in the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock valued at $1,144,000 after purchasing an additional 156,612 shares during the last quarter. AXQ Capital LP raised its holdings 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 in the last quarter. Finally, Hollencrest Capital Management raised its holdings in SoundHound AI by 197.5% during the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after purchasing an additional 2,400 shares in the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI News Summary

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

• Positive Sentiment: Management is targeting sustained adjusted EBITDA profitability in the second half of 2027, supported by a planned $120 million in cost savings and the integration of LivePerson. SOUN Q3 Earnings Call Highlights 2027 Profitability Target
• Positive Sentiment: Commercial momentum includes an expanded Ultraviolette partnership to bring voice AI to its electric motorcycle lineup, alongside an LG deal covering about 20 million U.S. smart TVs. SoundHound AI and Ultraviolette Announce Major Expansion
• Neutral Sentiment: Q3 revenue reached a record $62.4 million, up 48.5% year over year, while the reported loss per share was narrower than some estimates. However, revenue slightly missed other published estimates, making the quarter’s results mixed. SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift
• Neutral Sentiment: Cantor Fitzgerald lowered its price target to $10 from $15 but maintained an Overweight rating, reflecting continued analyst optimism alongside a more cautious valuation. Cantor Fitzgerald’s $10 Target
• Negative Sentiment: Investors focused on deteriorating profitability: non-GAAP gross margin fell to 50.3% from 59.3%, and the adjusted EBITDA loss widened. The move away from upfront licensing toward hosted, recurring contracts may also weigh on near-term recognized revenue. SoundHound Stock Slips Despite Beat as Adjusted Losses Widen
• Negative Sentiment: Persistent net losses, cash burn, and execution risks around the LivePerson acquisition remain concerns. Those issues have contributed to a steep recent sell-off despite strong year-over-year sales growth. SOUN Plunges 22.8% in the Past Month

SoundHound AI Stock Down 3.5%

NASDAQ SOUN opened at $4.11 on Friday. SoundHound AI has a 52 week low of $3.88 and a 52 week high of $14.98. The company has a 50 day moving average price of $5.50 and a 200 day moving average price of $7.03. The firm has a market cap of $1.83 billion, a PE ratio of -19.57 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, November 5th. The company reported ($0.05) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.12) by $0.07. The company had revenue of $62.43 million for the quarter, compared to analyst estimates of $61.71 million. SoundHound AI had a negative return on equity of 15.72% and a negative net margin of 33.17%. The firm’s quarterly revenue was up 48.5% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.03) EPS. On average, equities research analysts anticipate that SoundHound AI will post -0.39 earnings per share for the current fiscal year.

SoundHound AI Company Profile

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.