SoundHound AI (NASDAQ:SOUN) Stock Price Target Lowered at Cantor Fitzgerald

SoundHound AI (NASDAQ:SOUN) had its price objective trimmed by Cantor Fitzgerald from $15.00 to $10.00 in a research report released on Friday morning, MarketBeat reports. The firm currently has an overweight rating on the stock.

A number of other analysts also recently commented on SOUN. Weiss Ratings upgraded shares of SoundHound AI from a “sell (e+)” rating to a “sell (d-)” rating in a report on Thursday, October 15th. Yorkville Ives started coverage on shares of SoundHound AI in a report on Monday, October 5th. They set an “in-line” rating and a $6.50 target price for the company. DA Davidson dropped their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Piper Sandler dropped their price target on SoundHound AI from $7.00 to $6.00 and set a “neutral” rating on the stock in a report on Tuesday, September 22nd. Finally, Wall Street Zen upgraded SoundHound AI from a “strong sell” rating to a “sell” rating in a research report on Saturday, October 24th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $9.50.

SoundHound AI Trading Down 3.5%

NASDAQ:SOUN traded down $0.15 during mid-day trading on Friday, reaching $4.11. 29,163,390 shares of the stock were exchanged, compared to its average volume of 15,011,830. The business has a fifty day moving average price of $5.50 and a 200 day moving average price of $7.03. The firm has a market capitalization of $1.83 billion, a PE ratio of -19.57 and a beta of 2.89. SoundHound AI has a 1-year low of $3.88 and a 1-year high of $14.98.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, November 5th. The company reported ($0.05) EPS for the quarter, topping the consensus estimate of ($0.12) by $0.07. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 30.22%. The firm had revenue of $62.43 million for the quarter, compared to analysts’ expectations of $61.71 million. During the same period in the previous year, the business earned ($0.03) earnings per share. SoundHound AI’s revenue for the quarter was up 48.5% compared to the same quarter last year. On average, sell-side analysts forecast that SoundHound AI will post -0.39 earnings per share for the current year.

Insider Activity

In other news, insider James Hom sold 38,730 shares of the business’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 sale, the insider owned 1,105,555 shares in the company, valued at $6,998,163.15. The trade was a 3.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 38,730 shares of the company’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 completion of the sale, the senior vice president owned 834,253 shares of the company’s stock, valued at approximately $5,280,821.49. This trade represents a 4.44% decrease in their position. 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. In the last ninety days, insiders sold 288,758 shares of company stock valued at $1,828,598. 8.84% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System boosted its position in shares of SoundHound AI by 25.0% in the first 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. Themes Management Co LLC grew its holdings in shares of SoundHound AI by 86.5% during the first quarter. Themes Management Co LLC now owns 191,444 shares of the company’s stock valued at $1,315,000 after buying an additional 88,820 shares in the last quarter. Corient Private Wealth LP raised its position in SoundHound AI by 777.2% during the second quarter. Corient Private Wealth LP now owns 176,764 shares of the company’s stock valued at $1,144,000 after buying an additional 156,612 shares during the period. AXQ Capital LP raised its position in SoundHound AI by 395.6% during the second quarter. AXQ Capital LP now owns 254,744 shares of the company’s stock valued at $1,648,000 after buying an additional 203,345 shares during the period. Finally, Waverly Advisors LLC raised its position in SoundHound AI by 8.1% during the first quarter. Waverly Advisors LLC now owns 59,994 shares of the company’s stock valued at $412,000 after buying an additional 4,472 shares during the period. 19.28% of the stock is currently owned by hedge funds and other institutional investors.

SoundHound AI News Summary

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

• Positive Sentiment: Management is targeting sustained adjusted EBITDA profitability in the second half of 2027, supported by a planned $120 million in cost savings and the integration of LivePerson. SOUN Q3 Earnings Call Highlights 2027 Profitability Target
• Positive Sentiment: Commercial momentum includes an expanded Ultraviolette partnership to bring voice AI to its electric motorcycle lineup, alongside an LG deal covering about 20 million U.S. smart TVs. SoundHound AI and Ultraviolette Announce Major Expansion
• Neutral Sentiment: Q3 revenue reached a record $62.4 million, up 48.5% year over year, while the reported loss per share was narrower than some estimates. However, revenue slightly missed other published estimates, making the quarter’s results mixed. SOUN Q3 Loss Narrower Than Expected, Revenues Miss on Licensing Shift
• Neutral Sentiment: Cantor Fitzgerald lowered its price target to $10 from $15 but maintained an Overweight rating, reflecting continued analyst optimism alongside a more cautious valuation. Cantor Fitzgerald’s $10 Target
• Negative Sentiment: Investors focused on deteriorating profitability: non-GAAP gross margin fell to 50.3% from 59.3%, and the adjusted EBITDA loss widened. The move away from upfront licensing toward hosted, recurring contracts may also weigh on near-term recognized revenue. SoundHound Stock Slips Despite Beat as Adjusted Losses Widen
• Negative Sentiment: Persistent net losses, cash burn, and execution risks around the LivePerson acquisition remain concerns. Those issues have contributed to a steep recent sell-off despite strong year-over-year sales growth. SOUN Plunges 22.8% in the Past Month

About SoundHound AI

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.