DA Davidson Cuts SoundHound AI (NASDAQ:SOUN) Price Target to $10.00

SoundHound AI (NASDAQ:SOUN) had its price objective trimmed by DA Davidson from $12.00 to $10.00 in a research report sent to investors on Thursday,Benzinga reports. The brokerage currently has a buy rating on the stock.

A number of other research firms have also recently issued reports on SOUN. Piper Sandler cut their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $14.00.

SoundHound AI Stock Up 13.3%

Shares of SoundHound AI stock opened at $8.02 on Thursday. SoundHound AI has a 12-month low of $5.65 and a 12-month high of $22.17. The stock has a market capitalization of $3.47 billion, a P/E ratio of -21.10 and a beta of 2.64. The company has a 50-day simple moving average of $6.79 and a 200 day simple moving average of $7.61.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Tuesday, August 4th. The company reported ($0.10) EPS for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.03. The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 31.06%. The company’s revenue for the quarter was up 45.0% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.19) earnings per share. On average, equities analysts anticipate that SoundHound AI will post -0.45 earnings per share for the current year.

Insider Activity

In other SoundHound AI news, CTO Timothy Stonehocker sold 18,802 shares of the firm’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the sale, the chief technology officer owned 502,290 shares in the company, valued at approximately $3,747,083.40. This trade represents a 3.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the completion of the transaction, the senior vice president directly owned 472,983 shares of the company’s stock, valued at approximately $3,528,453.18. This represents a 5.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 268,022 shares of company stock worth $1,999,444. 8.84% of the stock is currently owned by insiders.

Institutional Trading of SoundHound AI

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Royal Bank of Canada lifted its holdings in SoundHound AI by 71.3% during the 1st quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after buying an additional 66,714 shares in the last quarter. Integrated Wealth Concepts LLC boosted its position in SoundHound AI by 8.9% in the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after buying an additional 1,201 shares during the last quarter. NewEdge Advisors LLC increased its stake in shares of SoundHound AI by 12.9% in the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after buying an additional 4,692 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of SoundHound AI by 69.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock valued at $21,434,000 after buying an additional 1,085,473 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of SoundHound AI by 10.1% during 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 during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Record revenue and earnings beat: Second-quarter revenue rose 45% year over year to $61.9 million, well above the approximately $42.6 million consensus estimate. The adjusted loss of $0.02 per share also beat expectations, while profitability metrics and margins improved. SoundHound Q2 Earnings Beat on OASYS Demand, Revenues Top, Stock Up
• Positive Sentiment: Higher full-year outlook: SoundHound raised its 2026 revenue floor, citing OASYS-driven enterprise adoption, faster deal conversions and broader customer demand. Management also emphasized continued margin improvement despite ongoing investment. SOUN Raises 2026 Revenue Outlook After OASYS Drives Record Q2 Sales
• Positive Sentiment: Potential strategic catalyst: Proxy adviser Glass Lewis recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound at the August 20 special meeting, supporting the planned expansion of SoundHound’s conversational-AI capabilities. Glass Lewis Recommends LivePerson Stockholders Vote For SoundHound AI Transaction
• Positive Sentiment: Trading momentum: Heavy call-option activity and high short interest may be amplifying the post-earnings move as bullish traders participate and short sellers cover positions.
• Neutral Sentiment: Analyst support is mixed: DA Davidson maintained a Buy rating while lowering its price target from $12 to $10. Piper Sandler cut its target from $8 to $7 and retained a Neutral rating.
• Negative Sentiment: Valuation and financial risks: Analysts note that SOUN remains expensive relative to sales, with projected 2026 growth needing to justify the premium. The company continues to report losses and cash burn, while potential dilution and execution risks could limit further upside. SOUN Dips 16.9% in 3 Months

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.