Insider Selling: SoundHound AI (NASDAQ:SOUN) COO Sells 71,113 Shares

SoundHound AI, Inc. (NASDAQ:SOUN) COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $450,145.29. Following the completion of the sale, the chief operating officer owned 2,600,231 shares of the company’s stock, valued at approximately $16,459,462.23. This trade represents a 2.66% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

SoundHound AI Stock Up 1.2%

SOUN stock traded up $0.07 during midday trading on Thursday, hitting $6.00. 16,598,502 shares of the company traded hands, compared to its average volume of 28,301,928. SoundHound AI, Inc. has a twelve month low of $5.65 and a twelve month high of $22.17. The business has a 50 day simple moving average of $6.70 and a 200-day simple moving average of $7.24. The stock has a market capitalization of $2.66 billion, a price-to-earnings ratio of -15.79 and a beta of 2.66.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. The company had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The company’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.19) earnings per share. Equities research analysts forecast that SoundHound AI, Inc. will post -0.33 EPS for the current year.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently made changes to their positions in the business. NewEdge Advisors LLC lifted its holdings in shares of SoundHound AI by 38.1% during the 2nd quarter. NewEdge Advisors LLC now owns 132,072 shares of the company’s stock worth $855,000 after acquiring an additional 36,415 shares during the period. IFP Advisors Inc increased its stake in SoundHound AI by 10.7% in the second quarter. IFP Advisors Inc now owns 32,748 shares of the company’s stock valued at $212,000 after acquiring an additional 3,163 shares during the period. Allworth Financial LP raised its position in SoundHound AI by 12.7% in the second quarter. Allworth Financial LP now owns 22,539 shares of the company’s stock worth $146,000 after purchasing an additional 2,537 shares in the last quarter. Waverly Advisors LLC lifted its stake in SoundHound AI by 6.9% during the second quarter. Waverly Advisors LLC now owns 64,132 shares of the company’s stock worth $415,000 after purchasing an additional 4,138 shares during the period. Finally, Nykredit A S bought a new stake in shares of SoundHound AI in the 2nd quarter valued at approximately $165,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI News Summary

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

• Positive Sentiment: Analysts cited by American Banking News assign SoundHound an average price target of $13.00, substantially above recent trading levels. This suggests potential upside if the company delivers on its growth plans. SoundHound AI Receives $13.00 Average Price Target from Analysts
• Positive Sentiment: SoundHound’s Asia business has extended its deal momentum to five consecutive quarters, with additional wins in China and India and continued expansion of its OASYS automotive platform. The developments support the company’s international growth and automotive AI opportunity. SoundHound Asia Growth Extends to 5 Quarters
• Neutral Sentiment: A comparison with NVIDIA highlights SoundHound’s rapid growth and narrowing losses, but also its much smaller scale, narrower voice-AI focus and lack of profitability. Investors may view the company as a higher-risk growth alternative within the AI sector. SoundHound vs. NVIDIA After Earnings
• Negative Sentiment: CEO Keyvan Mohajer, COO Michael Zagorsek, SVP Majid Emami and insider James Hom collectively sold about 285,863 shares at an average price of $6.33. The filings state the sales were made to cover tax withholding tied to vested equity awards, which reduces their bearish significance, although the volume may still weigh on sentiment. SoundHound Insider Sale Filing
• Negative Sentiment: SoundHound has recently declined alongside other speculative software names, including UiPath and C3.ai, despite broader market resilience. The sector-wide selling reflects investor caution toward unprofitable, high-volatility AI stocks and remains a headwind for SOUN. SoundHound AI Drops as Speculative Software Selling Intensifies

Wall Street Analyst Weigh In

A number of research firms have issued reports on SOUN. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a report on Friday, September 11th. DA Davidson decreased their target price on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Wall Street Zen raised SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Sunday. Finally, Piper Sandler lowered their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, SoundHound AI has a consensus rating of “Moderate Buy” and a consensus target price of $13.00.

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.