Zacks Research Upgrades SoundHound AI (NASDAQ:SOUN) to Hold

SoundHound AI (NASDAQ:SOUN) was upgraded by stock analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued on Monday,Zacks.com reports.

A number of other analysts also recently issued reports on SOUN. HC Wainwright increased their target price on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a “buy” rating in a research report on Thursday, October 16th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Finally, Piper Sandler decreased their target price on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating for the company in a research report on Monday, January 5th. One research analyst has rated the stock with a Strong Buy rating, five have assigned 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, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $16.07.

SoundHound AI Stock Performance

SOUN opened at $8.25 on Monday. The stock has a market capitalization of $3.47 billion, a PE ratio of -9.82 and a beta of 2.64. The company’s 50 day simple moving average is $10.58 and its 200 day simple moving average is $13.27. SoundHound AI has a 1 year low of $6.52 and a 1 year high of $22.17.

Insider Buying and Selling

In other news, COO Michael Zagorsek sold 73,406 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the transaction, the chief operating officer directly owned 1,787,459 shares of the company’s stock, valued at approximately $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Nitesh Sharan sold 60,780 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $685,598.40. Following the transaction, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at $19,234,069.44. This represents a 3.44% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 462,265 shares of company stock valued at $5,216,518 over the last 90 days. 9.17% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Danske Bank A S bought a new stake in shares of SoundHound AI during the third quarter valued at approximately $26,000. Investors Research Corp lifted its position in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after acquiring an additional 700 shares during the last quarter. Financial Consulate Inc. acquired a new position in shares of SoundHound AI in the 3rd quarter worth $32,000. Sound Income Strategies LLC lifted its holdings in shares of SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after purchasing an additional 575 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its position in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after purchasing an additional 1,060 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Media coverage notes SOUN among names that are “soaring,” reflecting short‑term buying interest and momentum in voice/AI names. ZoomInfo, DigitalOcean, Fastly, Samsara, and SoundHound AI Shares Are Soaring
• Positive Sentiment: Analysts/commentary highlight product rollouts (restaurant voice, dynamic ordering) and the Bridgepointe deal as potential revenue drivers that could validate the growth story if adoption accelerates. Does Restaurant Voice Rollout and Bridgepointe Deal Change The Bull Case For SoundHound AI (SOUN)?
• Positive Sentiment: Quiver/filings show sizable institutional accumulation by some funds (e.g., Tidal, Price T. Rowe, UBS), indicating selective conviction from large investors that can support the stock on upside news. SoundHound AI, Inc. to Report Fourth Quarter and Full Year 2025 Financial Results on February 26, 2026
• Neutral Sentiment: SoundHound scheduled its Q4 & full‑year 2025 results release for Feb. 26 (after market). Earnings/call presents a catalyst — either upside execution or miss will swing the stock. SoundHound AI To Report 2025 Fourth Quarter and Full Year Financial Results
• Neutral Sentiment: Valuation pieces and “is it worth buying” columns are active — they keep the stock volatile but don’t add a clear directional push until hard results or guidance arrive. SoundHound AI (SOUN) Valuation Check After Mixed Short And Long Term Share Returns
• Negative Sentiment: A detailed sell-side / analysis piece argues SOUN remains overvalued given persistent unprofitability and reliance on M&A for growth; the report warns upside may be limited absent stronger fundamentals. SoundHound AI: The Software Selloff Hasn’t Made This A Bargain Yet
• Negative Sentiment: Extensive insider selling (multiple executives selling sizable positions) and a large institutional reduction (Bank of America materially trimmed its stake) are headwinds for sentiment and can pressure the share price. Insider & Institutional Activity Summary

SoundHound AI Company Profile

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.