SoundHound AI (NASDAQ:SOUN) Stock Falls 1.4% – Should You Sell?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 1.4% during trading on Thursday. The stock traded as low as $3.88 and last traded at $4.26. Approximately 27,074,916 shares changed hands during trading, an increase of 3% from the average session volume of 26,210,928 shares. The stock had previously closed at $4.32.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: SoundHound reported record Q3 revenue of $62.43 million, above the $61.71 million analyst estimate, and an adjusted loss of $0.05 per share versus the expected $0.12 loss. The company also said it expects sustained adjusted EBITDA profitability in the second half of 2027. SoundHound AI Q3 results
• Positive Sentiment: A new LG Electronics partnership will bring restaurant ordering to an initial base of about 20 million LG smart TVs in the U.S., creating a potential commerce channel for SoundHound’s voice and AI services. SoundHound and LG partnership
• Positive Sentiment: SoundHound expanded its Ultraviolette partnership, with its voice AI co-pilot planned across the electric motorcycle maker’s global lineup. The expansion could broaden adoption of SoundHound’s in-vehicle voice technology. SoundHound and Ultraviolette expansion
• Negative Sentiment: Despite beating estimates, SoundHound remains unprofitable: its reported net margin was negative 67.45% and return on equity was negative 30.22%. The 2027 adjusted EBITDA profitability target underscores that investors may still have to wait for sustained profitability. SoundHound financial results

Analyst Ratings Changes

Several research analysts recently weighed in on SOUN shares. Wall Street Zen upgraded SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. Weiss Ratings upgraded SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Thursday, October 15th. DA Davidson decreased their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Yorkville Ives began coverage on SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 price target for the company. Finally, Piper Sandler cut their price objective on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a research report on Tuesday, September 22nd. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $11.50.

SoundHound AI Trading Down 1.4%

The company’s fifty day moving average is $5.62 and its two-hundred day moving average is $7.10. The stock has a market cap of $1.89 billion, a price-to-earnings ratio of -11.21 and a beta of 2.89.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Wednesday, August 5th. The company reported ($0.02) EPS for the quarter, topping 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 period in the prior year, the firm earned ($0.19) earnings per share. The firm’s revenue was up 45.0% compared to the same quarter last year. Analysts predict that SoundHound AI, Inc. will post -0.39 EPS for the current year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 38,730 shares of the stock in a transaction dated Tuesday, September 15th. The stock was 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 of the company’s stock, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Keyvan Mohajer sold 137,290 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $6.33, for a total value of $869,045.70. Following the transaction, the chief executive officer owned 3,684,947 shares of the company’s stock, valued at $23,325,714.51. This trade represents a 3.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 288,758 shares of company stock valued at $1,828,598. Corporate insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the business. Swiss National Bank boosted its stake in shares of SoundHound AI by 3.7% in the first quarter. Swiss National Bank now owns 767,100 shares of the company’s stock valued at $5,270,000 after purchasing an additional 27,300 shares during the period. Calamos Advisors LLC acquired a new position in shares of SoundHound AI in the third quarter valued at approximately $4,195,000. California State Teachers Retirement System increased its stake in SoundHound AI by 25.0% during the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after buying an additional 87,998 shares during the period. AXQ Capital LP increased its stake in SoundHound AI by 395.6% during the 2nd quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock worth $1,648,000 after buying an additional 203,345 shares during the period. Finally, Themes Management Co LLC lifted its holdings in SoundHound AI by 86.5% during the 1st quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock worth $1,315,000 after buying an additional 88,820 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc develops voice artificial intelligence and conversational intelligence technologies. Its platform is designed to enable people to interact with devices, applications and services using natural language, with capabilities including speech recognition, language understanding and conversational response generation.

The company’s offerings include the Houndify platform, which businesses can use to create branded voice assistants and conversational interfaces. SoundHound AI also provides voice-enabled solutions for industries such as automotive, restaurants and customer service, allowing users to access information, control functions, place orders and engage with businesses through voice interactions.