SoundHound AI (NASDAQ:SOUN) Stock Price Down 3.8% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 3.8% during mid-day trading on Wednesday . The stock traded as low as $6.75 and last traded at $6.75. 25,440,203 shares traded hands during trading, a decline of 7% from the average session volume of 27,492,367 shares. The stock had previously closed at $7.02.

SoundHound AI News Summary

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

• Positive Sentiment: SoundHound was named the overall Leader in the 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers, earning top marks across every evaluated category. That recognition can bolster investor confidence in the company’s competitive position and product quality. SoundHound AI Named As Overall Leader in The 2026 ISG Buyers Guide™ for Conversational AI Emerging Providers
• Positive Sentiment: Several analyst-focused articles highlighted upbeat Wall Street sentiment, with one note pointing to an average brokerage recommendation that leans toward a buy and another saying analysts see significant upside potential. That kind of coverage can support shares by reinforcing bullish expectations. Is SoundHound AI (SOUN) a Buy as Wall Street Analysts Look Optimistic? Wall Street Thinks This beaten Down AI Stock Could Easily Double From Here
• Neutral Sentiment: The company also announced it will participate in the D.A. Davidson 2026 Technology & Consumer Conference, giving management another chance to discuss strategy and growth prospects, but this is not usually a direct catalyst on its own. SoundHound AI to Participate in D.A. Davidson 2026 Technology & Consumer Conference
• Neutral Sentiment: One article discussed governance changes to the company’s bylaws, noting they could strengthen shareholder litigation rights and accountability. This is more of a governance development than a near-term operating catalyst. Is SoundHound AI (SOUN) Quietly Rewriting Its Governance To Shift The Investor-Litigation Balance?
• Negative Sentiment: A separate note on short interest showed no meaningful update in the reported data, so it does not appear to be a strong fresh catalyst, though SoundHound remains a volatile stock with sentiment-driven trading.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on SOUN. Piper Sandler restated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. DA Davidson reiterated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The company has a market capitalization of $2.92 billion, a PE ratio of -14.36 and a beta of 2.56. The company has a 50 day moving average of $7.89 and a two-hundred day moving average of $9.01.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.01). The firm had revenue of $44.20 million during the quarter, compared to analysts’ expectations of $42.56 million. SoundHound AI had a negative return on equity of 40.15% and a negative net margin of 91.84%.SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. During the same period in the previous year, the company earned ($0.06) earnings per share. On average, equities analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insider Buying and Selling

In related news, 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 value of $210,619.01. Following the completion of the transaction, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, COO Michael Zagorsek sold 52,968 shares of the stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the completion of the transaction, the chief operating officer owned 1,734,491 shares of the company’s stock, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 307,973 shares of company stock worth $2,091,110 over the last 90 days. Corporate insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Several hedge funds have recently added to or reduced their stakes in SOUN. Royal Bank of Canada boosted its holdings in SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after acquiring an additional 66,714 shares in the last quarter. Integrated Wealth Concepts LLC boosted its holdings in SoundHound AI by 8.9% in the first quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock worth $119,000 after acquiring an additional 1,201 shares in the last quarter. NewEdge Advisors LLC boosted its holdings in SoundHound AI by 12.9% in the first quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock worth $333,000 after acquiring an additional 4,692 shares in the last quarter. Goldman Sachs Group Inc. boosted its holdings in SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after acquiring an additional 1,085,473 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in SoundHound AI by 10.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock worth $5,620,000 after acquiring an additional 63,398 shares in the last quarter. 19.28% of the stock is owned by institutional investors.

About SoundHound AI

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.