Key Points
- COO Michael Zagorsek sold 73,406 shares on Dec. 22 at an average price of $11.28, generating $828,019.68 and reducing his stake to 1,787,459 shares (a 3.94% ownership decline).
- Broad insider selling was reported across the leadership team (CEO, CFO, COO, CTO) with large blocks sold Dec. 22–26 around $10.66–$11.28, a development likely to pressure near‑term investor sentiment.
- Fundamentals are mixed: quarterly revenue rose 67.6% to $42.05 million and EPS beat expectations (-$0.03 vs. -$0.09), but the company still shows negative margins/ROE; analysts’ consensus is a "Moderate Buy" with an average target of $17.07.
SoundHound AI, Inc. (NASDAQ:SOUN - Get Free Report) Director Diana Sroka sold 1,343 shares of the firm's stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $10.88, for a total value of $14,611.84. Following the transaction, the director owned 151,263 shares of the company's stock, valued at $1,645,741.44. This trade represents a 0.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website.
Diana Sroka also recently made the following trade(s):
- On Thursday, November 13th, Diana Sroka sold 1,343 shares of SoundHound AI stock. The stock was sold at an average price of $12.99, for a total transaction of $17,445.57.
SoundHound AI Stock Performance
NASDAQ SOUN opened at $10.41 on Tuesday. The firm has a 50 day simple moving average of $13.21 and a 200-day simple moving average of $13.47. SoundHound AI, Inc. has a one year low of $6.52 and a one year high of $23.50. The firm has a market cap of $4.37 billion, a price-to-earnings ratio of -12.39 and a beta of 2.63.
SoundHound AI (NASDAQ:SOUN - Get Free Report) last announced its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.06. The firm had revenue of $42.05 million for the quarter, compared to the consensus estimate of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The firm's revenue for the quarter was up 67.6% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.04) EPS. Equities analysts predict that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.
SoundHound AI News Summary
Here are the key news stories impacting SoundHound AI this week:
- Positive Sentiment: Cantor Fitzgerald upgraded SoundHound, citing progress in its voice and conversational-AI service development — a potential catalyst for investor interest and institutional flows. Cantor Fitzgerald Upgrade
- Positive Sentiment: MarketBeat featured SoundHound as one of three “application-layer” AI pure plays, highlighting scale after the Amelia acquisition, projected 2025 revenue growth, and management’s roadmap toward break-even — supportive for longer-term fundamentals. Application-Layer Rotation
- Neutral Sentiment: Several bullish analyst/commentary pieces (Motley Fool features) highlight SoundHound’s opportunity in voice-powered AI agents and enterprise traction, but they are thematic and longer‑term in nature rather than immediate catalysts. Fool: Second Derivative AI Stocks
- Neutral Sentiment: Market headlines grouping multiple tech names (e.g., “MongoDB, AppLovin, and SoundHound AI Stocks Trade Down”) note sector/rotation selling pressure — helpful context for intraday weakness but not company-specific negative news. Sector Headline
- Negative Sentiment: Heavy insider selling disclosed this week: CEO Keyvan Mohajer, CFO Nitesh Sharan, COO Michael Zagorsek, CTO Timothy Stonehocker, and other insiders reported multiple sales (large blocks on Dec. 22–26 at ~$10.66–$11.28). Collective insider supply and percentage ownership reductions are likely a near-term headwind for sentiment. (Example filing for CEO sale) SEC Filing — CEO Sale
- Negative Sentiment: Contrasting coverage includes cautionary takes about valuation/speculation in pure‑play AI names — reminders that momentum can reverse if revenue/profitability targets slip. Fool Warning
Institutional Investors Weigh In On SoundHound AI
Several institutional investors have recently added to or reduced their stakes in SOUN. Sound Income Strategies LLC increased its stake in SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company's stock valued at $34,000 after purchasing an additional 575 shares during the last quarter. Investors Research Corp grew its position in shares of SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company's stock valued at $29,000 after buying an additional 700 shares during the last quarter. EP Wealth Advisors LLC raised its stake in SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company's stock worth $151,000 after acquiring an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. lifted its position in SoundHound AI by 2.7% in the third quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company's stock valued at $513,000 after acquiring an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC lifted its position in SoundHound AI by 7.4% in the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company's stock valued at $200,000 after acquiring an additional 858 shares during the last quarter. Hedge funds and other institutional investors own 19.28% of the company's stock.
Analyst Upgrades and Downgrades
Several research analysts recently commented on the company. LADENBURG THALM/SH SH raised SoundHound AI to a "strong-buy" rating in a research note on Thursday, December 18th. Piper Sandler boosted their price objective on SoundHound AI from $12.00 to $15.00 and gave the stock a "neutral" rating in a research report on Friday, November 7th. Cantor Fitzgerald raised shares of SoundHound AI from a "neutral" rating to an "overweight" rating and raised their target price for the company from $13.00 to $15.00 in a report on Friday, December 12th. HC Wainwright boosted their price target on shares of SoundHound AI from $18.00 to $26.00 and gave the stock a "buy" rating in a report on Thursday, October 16th. Finally, DA Davidson reissued a "buy" rating and issued a $17.00 price objective on shares of SoundHound AI in a research report on Tuesday, November 18th. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, SoundHound AI has an average rating of "Moderate Buy" and a consensus target price of $17.07.
View Our Latest Stock Report on SoundHound AI
About SoundHound AI
(
Get Free Report)
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.
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