SoundHound AI (NASDAQ:SOUN) Stock Rating Lowered by Wall Street Zen

SoundHound AI (NASDAQ:SOUN) was downgraded by equities researchers at Wall Street Zen from a “sell” rating to a “strong sell” rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

SOUN has been the topic of a number of other reports. DA Davidson lowered their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. Piper Sandler cut their price objective on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, September 22nd. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $12.75.

SoundHound AI Price Performance

Shares of NASDAQ:SOUN opened at $6.04 on Friday. SoundHound AI has a 1 year low of $5.65 and a 1 year high of $22.17. The firm has a market capitalization of $2.68 billion, a PE ratio of -15.89 and a beta of 2.66. The business’s 50 day moving average price is $6.64 and its 200-day moving average price is $7.13.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, beating the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The firm’s revenue was up 45.0% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.19) EPS. As a group, analysts expect that SoundHound AI will post -0.32 earnings per share for the current year.

Insider Activity

In related news, COO Michael Zagorsek sold 71,113 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the completion of the sale, the chief operating officer directly owned 2,600,231 shares in the company, 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 document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $245,160.90. Following the sale, the senior vice president owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. The trade was a 4.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 288,758 shares of company stock worth $1,828,598. 8.84% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the company. Geode Capital Management LLC increased 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 last quarter. Swiss National Bank raised its position in shares of SoundHound AI by 3.7% during the 1st quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after buying an additional 27,300 shares during the period. California State Teachers Retirement System lifted its holdings in SoundHound AI by 25.0% in the first quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock valued at $3,023,000 after acquiring an additional 87,998 shares during the last quarter. Virtu Financial LLC lifted its holdings in SoundHound AI by 43.9% in the fourth quarter. Virtu Financial LLC now owns 219,773 shares of the company’s stock valued at $2,191,000 after acquiring an additional 67,088 shares during the last quarter. Finally, Rockefeller Capital Management L.P. lifted its holdings in SoundHound AI by 3.5% in the fourth quarter. Rockefeller Capital Management L.P. now owns 179,327 shares of the company’s stock valued at $1,788,000 after acquiring an additional 6,096 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

Key SoundHound AI News

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

• Positive Sentiment: OASYS Edge expands SoundHound’s addressable market. The company introduced an architecture that embeds LLM-powered, agentic voice AI directly into vehicles and smart devices. Manufacturers can deploy the same AI agent in cloud, edge or hybrid environments, with availability expected in late 2026. This could support broader adoption and lower deployment costs, although commercial revenue is not immediate. SoundHound AI Introduces OASYS Edge
• Positive Sentiment: Investors continue to focus on SoundHound as an AI growth stock. Recent coverage highlights its revenue growth, narrowing losses and potential to benefit from demand for embedded voice and agentic AI, providing a constructive long-term narrative. Cerebras vs. SoundHound comparison
• Neutral Sentiment: Heavy investor attention is increasing volatility. SoundHound is among the most-watched stocks on Zacks and is being compared with other AI companies as a potential 2026 investment. The attention may support trading interest but does not by itself change the company’s fundamentals. Is Trending Stock SoundHound AI a Buy Now?
• Negative Sentiment: Analyst actions are weighing on sentiment. Piper Sandler lowered its SoundHound price target to $6.00, and separate coverage linked a decline in the stock to an analyst downgrade. The reduced target signals limited near-term upside and reinforces concerns about valuation and continued losses. Piper Sandler Lowers SoundHound Price Target
• Negative Sentiment: Short-selling data suggests potential pressure but is inconsistent. One report places SOUN among stocks with short interest above one-third of the float, while another lists zero shares short, indicating a possible data discrepancy. If the higher figure is accurate, it could amplify volatility and downside risk, though it also creates squeeze potential. Squeeze Watch: Stocks With High Short Interest

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.