SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.8% – Should You Sell?

01 Apr 2026, 21:32 by Danessa Lincoln · The Markets Daily

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) dropped 2.8% during trading on Wednesday . The company traded as low as $6.64 and last traded at $6.68. Approximately 19,206,937 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 26,777,162 shares. The stock had previously closed at $6.87.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on SOUN shares. DA Davidson set a $14.00 price target on SoundHound AI in a research note on Thursday, January 8th. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. HC Wainwright dropped their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Finally, Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $14.93.

Check Out Our Latest Stock Report on SOUN

SoundHound AI Stock Down 2.8%

The company has a market cap of $2.82 billion, a P/E ratio of -133.57 and a beta of 2.65. The stock’s 50-day moving average price is $8.02 and its 200 day moving average price is $11.91.

SoundHound AI (NASDAQ:SOUN – Get Free Report) last issued its quarterly 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). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. During the same period last year, the business posted ($0.05) earnings per share. The firm’s revenue was up 59.4% compared to the same quarter last year. Analysts expect that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider James Ming Hom sold 31,019 shares of the firm’s stock in a transaction on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the sale, the insider owned 772,364 shares in the company, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at $11,777,193.89. This trade represents a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 337,649 shares of company stock worth $2,447,222. 9.17% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On SoundHound AI

Large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its position in shares of SoundHound AI by 16.4% during the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock valued at $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley boosted its stake in SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after buying an additional 2,917,280 shares in the last quarter. UBS Group AG boosted its stake in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC increased its holdings in SoundHound AI by 2,259.7% in the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after buying an additional 2,106,298 shares during the period. Finally, Jump Financial LLC bought a new stake in SoundHound AI in the 3rd quarter valued at $21,679,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

SoundHound AI Company Profile

(Get Free Report)

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.