SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.3% on Analyst Downgrade

SoundHound AI, Inc. (NASDAQ:SOUN) dropped 1.3% during mid-day trading on Tuesday after HC Wainwright lowered their price target on the stock from $26.00 to $20.00. HC Wainwright currently has a buy rating on the stock. SoundHound AI traded as low as $8.16 and last traded at $8.51. Approximately 20,798,512 shares changed hands during trading, a decline of 24% from the average daily volume of 27,386,893 shares. The stock had previously closed at $8.62.

A number of other brokerages also recently weighed in on SOUN. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their price objective for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Piper Sandler restated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Finally, DA Davidson set a $14.00 target price on shares of SoundHound AI in a research note on Thursday, January 8th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

Insider Buying and Selling

In other SoundHound AI news, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $1,627,997.28. Following the sale, the chief executive officer owned 2,198,287 shares of the company’s stock, valued at approximately $24,796,677.36. This represents a 6.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Majid Emami sold 32,741 shares of the company’s stock in a transaction on Friday, December 26th. The stock was sold at an average price of $10.66, for a total transaction of $349,019.06. Following the transaction, the senior vice president owned 532,845 shares in the company, valued at approximately $5,680,127.70. The trade was a 5.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 460,922 shares of company stock worth $5,199,073 in the last quarter. 9.17% of the stock is owned by company insiders.

SoundHound AI News Roundup

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

• Positive Sentiment: Q4 results showed accelerating revenue (year‑over‑year growth ~59%) and EPS in line with estimates; D.A. Davidson reiterated a Buy with a $14 price target, supporting a bullish narrative on the company’s growth trajectory. Analysts Split After SoundHound AI, Inc. (SOUN) Reports Q4 Results
• Positive Sentiment: Investor commentary and features (The Motley Fool) highlight the company’s revenue surge and positioning in “agentic” AI — these narratives can attract growth‑oriented investors looking for AI exposure. As Revenue Continues to Surge, Is SoundHound Stock a Buy?
• Positive Sentiment: Broader coverage lists SOUN among high‑upside AI growth picks, which can sustain longer‑term interest despite near‑term volatility. 3 Red-Hot Growth Stocks to Buy in 2026
• Neutral Sentiment: Market attention is elevated (Zacks/Yahoo pieces note SOUN as a “trending” stock), which increases volume and intra‑day moves but doesn’t by itself determine direction. SoundHound AI, Inc. (SOUN) Is a Trending Stock
• Neutral Sentiment: Comparative analysis pieces (e.g., BigBear.ai vs. SoundHound) keep the stock in thematic investor conversations but are opinion‑driven rather than event‑driven. Battle Royale: BigBear.ai vs. SoundHound AI
• Negative Sentiment: Recent analyst downgrades and a pessimistic forecast (coverage flagged by American Banking News) forced a gap down in the stock, which appears to be the main immediate driver of selling pressure. SoundHound AI (NASDAQ:SOUN) Shares Gap Down After Analyst Downgrade
• Negative Sentiment: HC Wainwright published a pessimistic forecast for SOUN’s stock price, adding to the negative analyst momentum and likely amplifying short‑term outflows. HC Wainwright Issues Pessimistic Forecast for SoundHound AI Stock Price

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. raised its holdings in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the period. Dogwood Wealth Management LLC raised its stake in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S purchased a new position in shares of SoundHound AI during the 3rd quarter valued at $26,000. Advisors Asset Management Inc. grew its stake in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after acquiring an additional 1,023 shares during the period. Finally, SHP Wealth Management purchased a new stake in SoundHound AI in the 4th quarter worth about $27,000. Institutional investors own 19.28% of the company’s stock.

SoundHound AI Stock Performance

The stock has a 50 day moving average of $9.42 and a 200-day moving average of $12.74. The firm has a market capitalization of $3.43 billion, a P/E ratio of -163.17 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm had revenue of $55.06 million during the quarter, compared to analyst estimates of $53.88 million. During the same quarter last year, the business earned ($0.05) earnings per share. The company’s quarterly revenue was up 59.4% on a year-over-year basis. As a group, sell-side analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

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.