SoundHound AI (NASDAQ:SOUN) Shares Down 3.5% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 3.5% on Wednesday . The company traded as low as $7.58 and last traded at $7.96. 30,832,346 shares changed hands during mid-day trading, an increase of 12% from the average session volume of 27,451,742 shares. The stock had previously closed at $8.25.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Zacks Research upgraded SoundHound from “strong sell” to “hold,” trimming bearish sentiment from a major research source and potentially reducing selling pressure. Zacks.com
• Positive Sentiment: Press coverage highlights product momentum — articles note the restaurant voice rollout and a Bridgepointe deal that could help revenue adoption in key verticals, supporting the bull case if adoption and monetization scale. Does Restaurant Voice Rollout and Bridgepointe Deal Change The Bull Case For SoundHound AI (SOUN)?
• Positive Sentiment: Several sell‑side firms still have buy/overweight ratings and the median analyst target (~$16) implies material upside from current levels, which can support a rebound if growth and margins beat expectations. SoundHound AI, Inc. to Report Fourth Quarter and Full Year 2025 Financial Results on February 26, 2026
• Neutral Sentiment: Company confirmed its 4Q/2025 earnings release and Feb. 26 conference call — this provides a clear catalyst and chance for management to address growth, margins and the Bridgepointe rollout. Timing adds short‑term volatility. SoundHound AI To Report 2025 Fourth Quarter and Full Year Financial Results, Host Conference Call and Webcast on February 26
• Neutral Sentiment: Investor attention is elevated (heavy search and above‑average volume), which can amplify moves in either direction depending on the upcoming earnings details. Investors Heavily Search SoundHound AI, Inc. (SOUN): Here is What You Need to Know
• Negative Sentiment: Zacks notes the stock plunged ~29% over the past month, signaling deteriorating sentiment and increased downside risk if revenue/margin beats miss. SoundHound Stock Down 29% in a Month: Buy the Dip or Avoid Premium?
• Negative Sentiment: Seeking Alpha argues the company remains overvalued and unprofitable with heavy M&A dependence; that critique can keep longer‑term investors cautious until profitability improves. SoundHound AI: The Software Selloff Hasn’t Made This A Bargain Yet
• Negative Sentiment: Significant insider selling (multiple executives disposing of shares) and mixed institutional moves (large blocks added and cut) add to downside risk and signal some investor de‑risking. SoundHound AI, Inc. to Report Fourth Quarter and Full Year 2025 Financial Results on February 26, 2026

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. Piper Sandler cut their target price on shares of SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday, January 5th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, SoundHound AI currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.07.

SoundHound AI Price Performance

The business has a 50 day simple moving average of $10.58 and a 200 day simple moving average of $13.27. The stock has a market cap of $3.34 billion, a PE ratio of -9.48 and a beta of 2.64.

Insider Transactions at SoundHound AI

In other news, CFO Nitesh Sharan sold 60,780 shares of the firm’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the transaction, the chief financial officer owned 1,705,148 shares in the company, valued at approximately $19,234,069.44. This trade represents a 3.44% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider James Ming Hom sold 42,600 shares of SoundHound AI stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $480,528.00. Following the completion of the sale, the insider directly owned 803,383 shares of the company’s stock, valued at approximately $9,062,160.24. The trade was a 5.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 462,265 shares of company stock valued at $5,216,518 in the last ninety days. 9.17% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors have recently bought and sold shares of the stock. Sound Income Strategies LLC boosted its stake in shares of SoundHound AI by 37.3% during the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after acquiring an additional 575 shares in the last quarter. Investors Research Corp lifted its holdings in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after purchasing an additional 700 shares during the last quarter. EP Wealth Advisors LLC boosted its position in SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after purchasing an additional 706 shares during the period. Newbridge Financial Services Group Inc. boosted its position in SoundHound AI by 2.7% during the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after purchasing an additional 830 shares during the period. Finally, Insigneo Advisory Services LLC grew its holdings in SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock valued at $200,000 after purchasing an additional 858 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors.

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.