Traders Buy Large Volume of SoundHound AI Call Options (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) was the target of some unusual options trading on Thursday. Investors purchased 120,933 call options on the company. This represents an increase of 51% compared to the average volume of 80,178 call options.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $14.00 target price on shares of SoundHound AI in a research note 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. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Trading Up 12.7%

Shares of SoundHound AI stock traded up $0.81 during trading hours on Thursday, reaching $7.25. The stock had a trading volume of 47,799,104 shares, compared to its average volume of 28,502,305. The firm has a market capitalization of $3.14 billion, a price-to-earnings ratio of -15.39 and a beta of 2.64. The firm has a 50 day simple moving average of $6.84 and a two-hundred day simple moving average of $7.63. SoundHound AI has a 1 year low of $5.65 and a 1 year high of $22.17.

SoundHound AI (NASDAQ:SOUN) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). The business had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 40.15%. The business’s revenue for the quarter was up 51.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.06) earnings per share. Sell-side analysts forecast that SoundHound AI will post -0.45 EPS for the current year.

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 64,994 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 $484,855.24. Following the sale, the chief operating officer directly owned 1,669,497 shares in the company, valued at approximately $12,454,447.62. The trade was a 3.75% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the senior vice president directly owned 472,983 shares in the company, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. 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 have sold a total of 268,022 shares of company stock valued at $1,999,444 over the last three months. Company insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in shares of SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of SoundHound AI by 3.1% during the 4th quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after buying an additional 273,097 shares during the period. Morgan Stanley grew its stake in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after buying an additional 2,917,280 shares during the last quarter. State Street Corp lifted its position in SoundHound AI by 0.9% during the 4th quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after acquiring an additional 80,908 shares during the last quarter. Finally, UBS Group AG grew its position in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the last quarter. Institutional investors own 19.28% of the company’s stock.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Revenue reached a record $61.9 million, up 45% year over year and well above analyst estimates near $52–$53 million. Gross profit increased 67.6% to $27.9 million, indicating improving operating leverage as demand grows for SoundHound’s voice and agentic AI platform. SoundHound AI Reports Record Q2 and All-Time High Revenue
• Positive Sentiment: The company exceeded earnings expectations: GAAP loss was $0.10 per share versus the $0.13 consensus, while adjusted results were also better than expected. Management cited OASYS and enterprise adoption as key growth drivers. SoundHound AI Reports Bullish Q2
• Positive Sentiment: SoundHound raised its full-year 2026 revenue outlook to $230 million–$260 million, with the midpoint above the roughly $232.5 million analyst forecast. The stronger outlook helped support the bullish reaction. SoundHound AI Second-Quarter Revenue Rises
• Neutral Sentiment: The company continues pursuing its LivePerson acquisition, while LivePerson is promoting the transaction ahead of its investor town hall. The deal could broaden SoundHound’s conversational AI capabilities, but approval and execution remain unresolved. SoundHound AI Pushes LivePerson Deal
• Negative Sentiment: Despite better-than-expected revenue, SoundHound remained unprofitable, reporting a $42.8 million net loss, a $43.3 million operating loss and $33.7 million of operating cash outflow. The company ended the quarter with $215.6 million in cash. SoundHound AI Stock Rises on Q2 Earnings
• Negative Sentiment: Short interest reportedly represents about 42% of the float, creating volatility and the potential for sharp swings in either direction. Separately, reported insider activity over the past six months consisted of sales rather than purchases, which may weigh on investor confidence. SoundHound AI Leads Most Shorted Stocks

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.