SoundHound AI (NASDAQ:SOUN) Shares Down 2.6% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) was down 2.6% on Friday . The stock traded as low as $5.86 and last traded at $5.90. Approximately 14,738,006 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 27,032,609 shares. The stock had previously closed at $6.06.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: Aragon Research named SoundHound a leader for agent platforms, highlighting its omnichannel agentic AI and enterprise automation — a validation of the company’s product roadmap that supports long‑term growth expectations. Aragon Research Globe report
• Positive Sentiment: Feature stories (Motley Fool) highlight SoundHound’s doubled revenue in 2025 and traction for voice/agentic AI across industries, reinforcing a growth narrative that could attract patient, long‑term investors. Fool: $7 stock looks like a steal
• Neutral Sentiment: Analyst consensus price target sits near $14.93 — a reminder of longer‑term analyst optimism, but the level is far above the current market price and not an immediate catalyst. Consensus target report
• Neutral Sentiment: Market coverage and hedge‑fund filings show increased institutional positions (e.g., Goldman Sachs, RBC), which provides liquidity and can stabilize the share register over time but doesn’t eliminate short‑term volatility. MarketBeat coverage
• Negative Sentiment: Significant coordinated insider selling by multiple senior executives (CEO, CFO, COO, CTO, SVP) — disclosed filings show blocks sold around the ~$6.79 level on Mar. 20 — which often triggers investor concern about near‑term share supply and confidence. Example filings and coverage: SEC filing (CEO sale), Insider sales coverage
• Negative Sentiment: An analyst/price‑target update trimmed the target by ~10.3% to $14.92, signaling some analyst reassessment that can weigh on sentiment despite still‑elevated longer‑term targets. Price‑target decrease article
• Negative Sentiment: High‑profile negative commentary (Jim Cramer calling the company a “continual money loser”) and sector headlines about competing AI assistants have amplified selling pressure and contributed to today’s decline. Jim Cramer commentary
• Negative Sentiment: Recent intraday/close reports show sharper downside moves versus the broader market — reflecting the combined effect of sector weakness, headlines and insider sales. Yahoo Markets drop coverage

Wall Street Analyst Weigh In

A number of analysts recently issued reports on the company. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. HC Wainwright decreased their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research report on Thursday, January 8th. Finally, Piper Sandler reaffirmed a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, SoundHound AI presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The company has a 50 day moving average of $8.19 and a 200-day moving average of $12.04. The company has a market cap of $2.49 billion, a P/E ratio of -117.98 and a beta of 2.65.

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

Insiders Place Their Bets

In other SoundHound AI news, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $359,652.72. Following the completion of the transaction, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at $11,777,193.89. The trade was a 2.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the transaction, the chief executive officer directly owned 2,073,777 shares in the company, valued at $14,080,945.83. The trade was a 5.66% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 337,649 shares of company stock worth $2,447,222. 9.17% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Northwestern Mutual Wealth Management Co. lifted its stake in SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC increased its position in shares of SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the last quarter. Danske Bank A S bought a new position in shares of SoundHound AI during the 3rd quarter valued at about $26,000. Advisors Asset Management Inc. raised its holdings in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after buying an additional 1,023 shares in the last quarter. Finally, SHP Wealth Management purchased a new position in shares of SoundHound AI during the 4th quarter valued at about $27,000. 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.