SoundHound AI (NASDAQ:SOUN) Trading Down 4.9% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 4.9% during mid-day trading on Thursday . The company traded as low as $7.68 and last traded at $7.82. 29,279,815 shares changed hands during trading, an increase of 10% from the average session volume of 26,735,227 shares. The stock had previously closed at $8.22.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Casey’s, the U.S. convenience retailer and pizza chain, expanded and renewed its use of SoundHound’s AI ordering agents across more than 2,600 stores; the agents have handled 21M+ guest interactions, boosting evidence of enterprise traction and recurring revenue potential. Casey’s Expands Partnership with SoundHound AI
• Positive Sentiment: SoundHound announced a definitive agreement to acquire LivePerson, combining voice-led and messaging/chat capabilities to create an omnichannel conversational-AI platform — analysts and coverage note this could open a large (cited ~$500M) revenue opportunity and improve scale/data. SoundHound AI Acquisition Of LivePerson Reshapes Omnichannel AI And Valuation
• Positive Sentiment: Wedbush and other commentators view the LivePerson deal as strengthening SoundHound’s competitive position; Wedbush flagged the acquisition as strategically accretive. SoundHound AI strengthens position with LivePerson acquisition, says Wedbush
• Positive Sentiment: DA Davidson reaffirmed a “buy” on SOUN with a $14 price target, indicating analyst conviction that the company’s strategic moves support upside from current levels. DA Davidson rating note (via Benzinga)
• Neutral Sentiment: Equity analysts and trade press are comparing SoundHound to peers (e.g., Cerence) to weigh relative execution, addressable markets and valuation; coverage notes both opportunity and competition in voice AI. SoundHound vs. Cerence: Which Voice AI Stock Has Stronger Potential?
• Neutral Sentiment: SoundHound set its Q1 2026 earnings release and conference call for May 7 — this near-term report could trigger volatility as investors re-assess revenue progress and margins post-acquisition. SoundHound AI To Report 2026 First Quarter Financial Results
• Negative Sentiment: Shares had recent down days and headlines noted declines greater than the market, reflecting some profit-taking and short-term concern around deal execution, integration risk or near-term dilution/expense. SoundHound AI, Inc. (SOUN) Declines More Than Market

Analysts Set New Price Targets

A number of brokerages have recently issued reports on SOUN. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. Piper Sandler reiterated a “neutral” rating and set a $9.00 target price (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. DA Davidson reissued a “buy” rating and set a $14.00 price target on shares of SoundHound AI in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, SoundHound AI presently has a consensus rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Trading Down 4.9%

The company has a market cap of $3.31 billion, a PE ratio of -156.37 and a beta of 2.71. The firm has a 50 day moving average of $7.43 and a two-hundred day moving average of $10.92.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($0.05) EPS. On average, research analysts forecast that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Transactions at SoundHound AI

In other news, insider James Ming Hom sold 31,019 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $210,619.01. Following the sale, the insider owned 772,364 shares in the company, valued at $5,244,351.56. This represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of the stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the sale, the chief financial officer owned 1,661,121 shares in the company, valued at approximately $11,279,011.59. The trade was a 2.58% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 307,973 shares of company stock worth $2,091,110 over the last quarter. Corporate insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of SoundHound AI by 16.4% in the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the last quarter. Morgan Stanley raised its stake in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. UBS Group AG boosted its holdings in shares of SoundHound AI by 77.6% during the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 shares during the last quarter. Voloridge Investment Management LLC boosted its holdings in shares of SoundHound AI by 2,259.7% during the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after acquiring an additional 2,106,298 shares during the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of SoundHound AI during the 3rd quarter valued at about $21,679,000. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Company Profile

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.