SoundHound AI (NASDAQ:SOUN) Shares Down 6.9% – Should You Sell?
by Mitch Edgeman · The Markets DailySoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report)’s stock price dropped 6.9% during mid-day trading on Thursday . The company traded as low as $6.65 and last traded at $6.88. Approximately 35,998,799 shares changed hands during trading, an increase of 31% from the average daily volume of 27,520,805 shares. The stock had previously closed at $7.39.
SoundHound AI News Roundup
Here are the key news stories impacting SoundHound AI this week:
- Positive Sentiment: Analyst bullish — At least one analyst said SOUN could double, a public bullish take that can attract buyers and supports upside expectations. Analyst says SoundHound stock can double as CFO announces departure
- Positive Sentiment: Peet’s Coffee commercial win — SoundHound’s Employee Assist voice AI was selected to support in-store employees across Peet’s U.S. footprint, a meaningful customer deployment that should help recurring revenue and references. Peet’s Coffee Partners with SoundHound AI
- Positive Sentiment: Enterprise partnership — SoundHound struck a deal to integrate its platforms into Experis’ new AI services suite, expanding go‑to‑market channels for enterprise adoption. Experis and SoundHound AI partner
- Neutral Sentiment: Interim finance leadership named — Co‑founder and former CFO James Hom will serve as interim CFO, which reduces near‑term uncertainty while the company searches for a permanent replacement. SoundHound AI Announces CFO Transition
- Negative Sentiment: CFO departure sparks selling — CFO Nitesh Sharan is leaving to join Quantinuum, and the announced exit has triggered investor selling and headline risk around financial leadership continuity. SoundHound AI Announces CFO Transition
- Negative Sentiment: Competitive concerns — Coverage noted NVIDIA’s push into voice AI, raising investor worries about intensifying competition in the voice/conversational AI market and pressuring SOUN shares. SoundHound AI Sinks 6%: What NVIDIA’s Voice AI Bet Says About The Broader Market
- Negative Sentiment: Near‑term selling pressure — Market coverage (Benzinga/others) highlights active selling related to the CFO transition, contributing to today’s downside despite positive commercial news. Why Is SoundHound AI Stock Tumbling Today?
Wall Street Analysts Forecast Growth
Several analysts recently commented on SOUN shares. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Weiss Ratings reissued a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. DA Davidson set a $14.00 price objective on SoundHound AI in a research note on Thursday, January 8th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, HC Wainwright cut their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $14.93.
Check Out Our Latest Report on SoundHound AI
SoundHound AI Stock Down 6.9%
The stock has a market capitalization of $2.89 billion, a price-to-earnings ratio of -137.57 and a beta of 2.65. The business’s 50-day moving average is $8.86 and its two-hundred day moving average is $12.40.
SoundHound AI (NASDAQ:SOUN – Get Free Report) last announced its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). The firm had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm’s revenue for the quarter was up 59.4% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.05) EPS. As a group, analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.
Insider Activity at SoundHound AI
In other SoundHound AI news, CFO Nitesh Sharan sold 60,780 shares of the business’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the sale, the chief financial officer owned 1,705,148 shares of the company’s stock, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $828,019.68. Following the completion of the sale, the chief operating officer 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 disclosure for this sale is available in the SEC filing. Insiders have sold a total of 460,922 shares of company stock valued at $5,199,073 in the last ninety days. 9.17% of the stock is owned by insiders.
Hedge Funds Weigh In On SoundHound AI
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its position in SoundHound AI by 16.4% in the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock valued at $698,798,000 after acquiring an additional 6,132,648 shares during the period. Morgan Stanley lifted its holdings in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares in the last quarter. UBS Group AG grew its position in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares in the last quarter. Voloridge Investment Management LLC increased its position 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 worth $21,929,000 after purchasing an additional 2,106,298 shares during the last quarter. Finally, Jump Financial LLC bought a new position in shares of SoundHound AI during the 3rd quarter valued at $21,679,000. 19.28% of the stock is currently owned by institutional investors and hedge funds.
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.