SoundHound AI, Inc. (NASDAQ:SOUN) Stock Has Average Price Target of $12.75

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) have been assigned an average recommendation of “Moderate Buy” from the seven research firms that are presently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, three have assigned a buy rating and one has given a strong buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $12.75.

Several brokerages have weighed in on SOUN. Piper Sandler cut their target price on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a research note on Friday, September 11th. Wall Street Zen lowered SoundHound AI from a “sell” rating to a “strong sell” rating in a report on Saturday, September 26th. Finally, DA Davidson reduced their price objective on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th.

More SoundHound AI News

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

• Positive Sentiment: Enterprise AI and OASYS offer a potential growth catalyst. SoundHound’s enterprise business has become its largest segment, while its OASYS platform for building AI agents could help the company expand beyond its traditional voice-assistant image. However, the key question is whether OASYS has translated into meaningful sales. What Can Make SoundHound AI Stock A Buy?
• Positive Sentiment: Banking and financial-services expansion could broaden demand. SoundHound plans to showcase AI agents at Money20/20 USA 2026, highlighting an effort to win enterprise customers in financial services. SoundHound AI to Showcase AI Agents for Banking and Financial Services
• Neutral Sentiment: Competitive positioning remains a longer-term opportunity. SoundHound’s voice-AI technology is being presented as a possible challenge to Apple’s dominance, but the report does not identify a specific contract or revenue milestone that would immediately change investor expectations. Why SoundHound’s Voice AI Challenge Could Shake Apple’s Dominance
• Neutral Sentiment: Analysts and investors are comparing SoundHound with other AI opportunities. A comparison with Nebius emphasizes SoundHound’s conversational-AI focus and its LivePerson acquisition, but suggests investors must weigh that opportunity against Nebius’s faster-scaling AI infrastructure business. Nebius Group vs. SoundHound AI
• Negative Sentiment: Technical weakness and bearish sentiment are weighing on the shares. SoundHound broke key support and reached its lowest level since November 2024, with the stock down roughly 70% over 12 months. One report described surging short interest, although a separate data item listed zero shares short, indicating conflicting short-interest information. SoundHound Stock Breaks Key Support
• Negative Sentiment: Cash-burn and profitability concerns remain major risks. Commentary questioning whether rapid spending is creating durable competitive advantages adds to investor concerns, particularly while SoundHound continues to report negative earnings and margins. Cash-Burning Stock Commentary

SoundHound AI Trading Down 2.4%

Shares of NASDAQ:SOUN opened at $5.39 on Wednesday. The firm’s 50 day moving average is $6.55 and its two-hundred day moving average is $7.02. SoundHound AI has a 52 week low of $5.36 and a 52 week high of $22.17. The firm has a market capitalization of $2.39 billion, a P/E ratio of -14.18 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.11. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%. The company had revenue of $61.90 million for the quarter, compared to analysts’ expectations of $52.38 million. During the same quarter in the previous year, the company posted ($0.19) earnings per share. The business’s revenue for the quarter was up 45.0% compared to the same quarter last year. Analysts predict that SoundHound AI will post -0.32 EPS for the current year.

Insider Activity at SoundHound AI

In related news, SVP Majid Emami sold 38,730 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $245,160.90. Following the transaction, the senior vice president owned 834,253 shares in the company, valued at $5,280,821.49. This trade represents a 4.44% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 71,113 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total transaction of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares in the company, valued at $16,459,462.23. This represents a 2.66% decrease in their position. 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 three months, insiders have sold 288,758 shares of company stock valued at $1,828,598. Insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several institutional investors have recently modified their holdings of SOUN. SHP Wealth Management bought a new stake in shares of SoundHound AI in the 4th quarter worth approximately $27,000. Hollencrest Capital Management grew its position in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock worth $25,000 after buying an additional 2,400 shares during the last quarter. Vermillion Wealth Management Inc. increased its holdings in shares of SoundHound AI by 92.0% in the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after buying an additional 4,409 shares in the last quarter. Clarus Group Inc. bought a new position in shares of SoundHound AI in the first quarter valued at $69,000. Finally, 180 Wealth Advisors LLC acquired a new stake in shares of SoundHound AI during the 1st quarter valued at $69,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.