SoundHound AI (NASDAQ:SOUN) Trading Up 1.9% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) shares shot up 1.9% on Wednesday . The stock traded as high as $6.65 and last traded at $6.48. 26,977,235 shares changed hands during trading, a decline of 2% from the average session volume of 27,435,529 shares. The stock had previously closed at $6.36.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: Aragon Research named SoundHound a leader in its 2026 Globe for Agent Platforms — a third‑party endorsement that can help enterprise sales and positioning in conversational/agentic AI. Aragon Research Globe™ Leader
• Positive Sentiment: Industry/features highlight SoundHound’s large long‑term upside in voice/agentic AI, reinforcing the growth narrative for patient investors. These pieces can support longer‑horizon interest despite near‑term volatility. Fool Feature
• Neutral Sentiment: Brokerage coverage still shows a sizable upside consensus target (~$14.93), providing a reference point versus current trading levels but not an immediate catalyst. Consensus Target $14.93
• Negative Sentiment: Significant, clustered insider selling: multiple senior executives (CFO Nitesh Sharan, COO Michael Zagorsek, CTO Timothy Stonehocker, SVP Majid Emami, others) sold large blocks in mid‑March near ~$6.79 — such coordinated sales often increase supply and spook investors. Representative filings/reports: Executive Sale — Zagorsek and CFO Sale — InsiderTrades
• Negative Sentiment: Reported one‑day share decline and continued short‑term selling pressure: market write‑ups flagged a larger intraday fall (reported ~‑6.5% on Mar. 26), signaling downside momentum. Yahoo / Zacks Price Drop
• Negative Sentiment: Sector/competition and negative media: AI assistant feature rollouts (e.g., Anthropic/Claude device control) and high‑profile criticism (Jim Cramer calling the company a “continual money loser”) have been cited as contributors to selling across AI names, including SOUN. Sector Pressure / Yahoo Jim Cramer Commentary

Analyst Upgrades and Downgrades

Several analysts have commented on the stock. HC Wainwright lowered their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price target for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Finally, Piper Sandler reissued a “neutral” rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. One 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 assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The business’s 50 day moving average is $8.29 and its two-hundred day moving average is $12.12. The firm has a market capitalization of $2.49 billion, a PE ratio of -117.98 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). The company had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.05) earnings per share. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Transactions at SoundHound AI

In other news, CFO Nitesh Sharan sold 44,027 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the transaction, the chief financial officer owned 1,661,121 shares of the company’s stock, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Majid Emami sold 31,019 shares of the company’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 $210,619.01. Following the completion of the transaction, the senior vice president owned 501,826 shares in the company, valued at approximately $3,407,398.54. This trade represents a 5.82% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 337,649 shares of company stock valued at $2,447,222. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Danske Bank A S bought a new stake in shares of SoundHound AI during the 3rd quarter worth $26,000. Investors Research Corp boosted its holdings in shares of 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 in the last quarter. Financial Consulate Inc. bought a new position in shares of SoundHound AI during the 3rd quarter valued at about $32,000. Sound Income Strategies LLC increased its position 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 valued at $34,000 after purchasing an additional 575 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. raised its holdings 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 valued at $25,000 after buying an additional 1,060 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.