SoundHound AI (NASDAQ:SOUN) Trading Down 4.1% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) fell 4.1% on Tuesday . The stock traded as low as $6.85 and last traded at $7.03. Approximately 31,203,527 shares traded hands during mid-day trading, an increase of 13% from the average session volume of 27,534,666 shares. The stock had previously closed at $7.33.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound said its restaurant drive-thru AI is showing clear ROI, with cross-selling activity and Voice Insight adoption helping support broader rollouts. That suggests its voice AI products are moving from pilots to monetized deployments. SoundHound’s Drive-Thru AI Shows ROI: Can Restaurant Rollouts Scale?
• Positive Sentiment: The company also released new research showing 96% of organizations said agentic AI deployments met or exceeded ROI expectations, while 72% reported higher employee satisfaction after adoption. That supports SoundHound’s broader pitch that enterprise customers are beginning to see measurable value from AI agents. Research Finds 96% of Organizations Report that Agentic AI Deployments Met or Exceeded ROI Expectations in 2026
• Neutral Sentiment: Several SoundHound executives, including the CEO, COO, CTO and other insiders, sold shares recently. The company said the transactions were related to tax withholding on vested equity awards, which reduces the chance they signal negative fundamentals, but the volume of selling can still hurt sentiment. SoundHound AI (NASDAQ:SOUN) CTO Timothy Stonehocker Sells 18,802 Shares
• Negative Sentiment: Investors remain worried about rising losses, premium valuation, and the cluster of insider sales, which may be contributing to weakness in SOUN shares even as the company highlights growth in AI demand. SOUN Stock Eyes Worst Month This Year: Insider Share Disposals At SoundHound AI Draw Retail Attention

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on SOUN. HC Wainwright cut 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. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday. Piper Sandler restated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, DA Davidson reiterated a “buy” rating and set a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. 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 data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Trading Up 2.3%

The firm has a market capitalization of $3.08 billion, a P/E ratio of -15.15 and a beta of 2.56. The business’s fifty day moving average is $7.94 and its 200 day moving average is $8.81.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million for the quarter, compared to the consensus estimate 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 quarterly revenue was up 51.7% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.06) earnings per share. As a group, sell-side analysts predict that SoundHound AI, Inc. will post -0.45 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related news, insider James Ming Hom sold 28,843 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $215,168.78. Following the completion of the transaction, the insider owned 743,521 shares in the company, valued at $5,546,666.66. This trade represents a 3.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 126,540 shares of SoundHound AI stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the transaction, the chief executive officer directly owned 1,947,237 shares in the company, valued at $14,526,388.02. This represents a 6.10% 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. Over the last quarter, insiders sold 575,995 shares of company stock worth $4,090,554. 8.84% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. EP Wealth Advisors LLC lifted its position in shares of SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after acquiring an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. lifted its holdings in shares of SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after purchasing an additional 830 shares in the last quarter. Insigneo Advisory Services LLC lifted its holdings in shares of SoundHound AI by 7.4% in 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 in the last quarter. Clear Creek Financial Management LLC boosted its position in shares of SoundHound AI by 1.6% in the fourth quarter. Clear Creek Financial Management LLC now owns 58,091 shares of the company’s stock worth $579,000 after buying an additional 941 shares during the period. Finally, PNC Financial Services Group Inc. grew its holdings in shares of SoundHound AI by 15.5% during the third quarter. PNC Financial Services Group Inc. now owns 7,127 shares of the company’s stock valued at $115,000 after buying an additional 956 shares in the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.