SoundHound AI (NASDAQ:SOUN) Stock Price Up 1.1% – Should You Buy?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) shot up 1.1% during mid-day trading on Thursday . The stock traded as high as $7.48 and last traded at $7.48. Approximately 20,114,571 shares changed hands during trading, a decline of 30% from the average session volume of 28,920,412 shares. The stock had previously closed at $7.40.

More SoundHound AI News

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

• Positive Sentiment: SoundHound’s record second-quarter results exceeded expectations, with revenue rising 45% year over year to $61.9 million and adjusted losses narrowing significantly. Management also raised its 2026 revenue outlook, strengthening the growth narrative. SoundHound’s Q2 Results Fuel Estimate Hikes: Is the Stock a Buy Now?
• Positive Sentiment: Rapid adoption of the OASYS agentic-AI platform is reportedly shortening sales cycles and accelerating customer onboarding, offering a potential catalyst for sustained enterprise growth. 5 Must-Read Analyst Questions From SoundHound AI’s Q2 Earnings Call
• Positive Sentiment: Analyst optimism remains strong: the average Wall Street price target is approximately $12.71, while one prominent analyst cited potential gains of about 167% if the market begins valuing SoundHound more in line with its revenue growth. SoundHound Shed a Quarter of Its Value Over 12 Months: 167% Gains To Follow Says A Prominent Analyst
• Neutral Sentiment: Northland Securities improved its full-year 2026 and 2027 EPS forecasts, but still expects SoundHound to remain unprofitable, with estimated losses of $0.38 per share in 2026 and $0.32 in 2027.
• Negative Sentiment: Investors remain concerned about ongoing cash burn, negative margins and the company’s premium valuation. SoundHound’s strong revenue growth has not yet translated into profits, creating pressure for execution to remain excellent.
• Negative Sentiment: Northland lowered its fourth-quarter 2026 EPS forecast to a $0.11 loss from a $0.10 loss, underscoring that profitability remains a longer-term objective despite better growth estimates.

Wall Street Analysts Forecast Growth

SOUN has been the subject of several recent analyst reports. Wall Street Zen upgraded SoundHound AI from a “strong sell” rating to a “sell” rating in a research note on Saturday. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. DA Davidson dropped their price objective on SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. Finally, Piper Sandler reduced their target price on SoundHound AI from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $13.60.

SoundHound AI Price Performance

The company’s fifty day simple moving average is $6.71 and its 200-day simple moving average is $7.49. The firm has a market capitalization of $3.22 billion, a PE ratio of -19.55 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last released its 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 net margin of 67.45% and a negative return on equity of 30.22%. The business had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. During the same quarter in the previous year, the company earned ($0.19) earnings per share. The company’s quarterly revenue was up 45.0% on a year-over-year basis. Analysts forecast that SoundHound AI, Inc. will post -0.33 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, COO Michael Zagorsek sold 64,994 shares of the stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the completion of the transaction, the chief operating officer directly owned 1,669,497 shares of the company’s stock, valued at approximately $12,454,447.62. This represents a 3.75% decrease in their position. The transaction was disclosed in a document filed 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, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $7.46, for a total value of $943,988.40. Following the completion of the transaction, the chief executive officer owned 1,947,237 shares in the company, valued at $14,526,388.02. The trade was a 6.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 268,022 shares of company stock valued at $1,999,444. Insiders own 8.84% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

A number of large investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its position in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after acquiring an additional 1,909,868 shares during the last quarter. Rakuten Securities Inc. raised its holdings in SoundHound AI by 877.9% in the 4th quarter. Rakuten Securities Inc. now owns 333,605 shares of the company’s stock valued at $3,326,000 after acquiring an additional 299,492 shares during the last quarter. UBS Group AG raised its holdings in SoundHound AI by 77.6% in 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. California State Teachers Retirement System lifted its stake in SoundHound AI by 25.0% in the 1st quarter. California State Teachers Retirement System now owns 440,023 shares of the company’s stock worth $3,023,000 after purchasing an additional 87,998 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. lifted its stake in SoundHound AI by 140.5% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 266,576 shares of the company’s stock worth $2,826,000 after purchasing an additional 155,743 shares in the last quarter. 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.