SoundHound AI (NASDAQ:SOUN) Shares Up 2.5% Following Analyst Upgrade

SoundHound AI, Inc. (NASDAQ:SOUN) shot up 2.5% during trading on Wednesday after LADENBURG THALM/SH SH upgraded the stock to a strong-buy rating. The stock traded as high as $9.40 and last traded at $9.37. 29,051,199 shares changed hands during mid-day trading, an increase of 6% from the average session volume of 27,373,082 shares. The stock had previously closed at $9.14.

Several other brokerages have also commented on SOUN. HC Wainwright decreased their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Zacks Research upgraded shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, DA Davidson restated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a report on Wednesday, April 22nd. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $14.93.

Insider Activity at SoundHound AI

In related news, CEO Keyvan Mohajer sold 124,510 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the sale, the chief executive officer directly owned 2,073,777 shares of the company’s stock, valued at approximately $14,080,945.83. This represents a 5.66% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Majid Emami sold 31,019 shares of the stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the sale, the senior vice president directly owned 501,826 shares in the company, valued at $3,407,398.54. This trade represents a 5.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 307,973 shares of company stock worth $2,091,110 in the last ninety days. 8.84% of the stock is currently owned by company insiders.

More SoundHound AI News

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

• Positive Sentiment: SoundHound posted record Q1 revenue of $44.2 million, up about 52% year over year, and exceeded revenue expectations, showing continued momentum in its voice AI business. SoundHound AI Reports Record Q1 Revenue of $44.2 Million, Up 52%
• Positive Sentiment: The company launched OASYS, a self-learning AI agent platform, which could expand SoundHound’s product offering and support longer-term growth. SoundHound AI (SOUN) Launches OASYS Self-Learning AI Agent Platform
• Positive Sentiment: SoundHound outlined 2027 revenue expectations of at least $350 million to $400 million after the planned LivePerson acquisition, suggesting management sees meaningful future scale. SoundHound outlines 2027 revenue of at minimum $350M-$400M following planned LivePerson acquisition
• Neutral Sentiment: Analysts remain broadly constructive, with at least one recent upgrade to strong-buy and commentary that the stock could have meaningful upside if execution improves. Wall Street Bulls Look Optimistic About SoundHound AI (SOUN): Should You Buy?
• Negative Sentiment: Despite the revenue beat, SoundHound missed earnings estimates and cited higher acquisition-related costs and vendor true-ups, which pressured margins and weighed on investor sentiment. SOUN Q1 Earnings Miss on Higher Costs, Revenue Beat, Stock Down
• Negative Sentiment: Investors also appear concerned that the planned LivePerson deal and broader acquisition strategy could continue to pressure earnings even as revenue grows. SoundHound’s stock falls as acquisitions weigh on earnings results

Institutional Trading of SoundHound AI

Institutional investors have recently bought and sold shares of the company. Hollencrest Capital Management grew its position in SoundHound AI by 197.5% during the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after purchasing an additional 2,400 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares during the period. Dogwood Wealth Management LLC lifted its stake in SoundHound AI by 152.1% during the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after acquiring an additional 1,544 shares during the period. Danske Bank A S bought a new position in SoundHound AI during the 3rd quarter valued at about $26,000. Finally, SHP Wealth Management bought a new position in SoundHound AI during the 4th quarter valued at about $27,000. 19.28% of the stock is owned by hedge funds and other institutional investors.

SoundHound AI Trading Down 7.8%

The firm has a market cap of $3.75 billion, a P/E ratio of -18.89 and a beta of 2.58. The company’s 50 day simple moving average is $7.57 and its 200-day simple moving average is $10.18.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.02). The business had revenue of $55.06 million for the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. The business’s revenue for the quarter was up 59.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.05) EPS. On average, sell-side analysts anticipate that SoundHound AI, Inc. will post -0.34 earnings per share for the current year.

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.