
SoundHound AI (SOUN) stock is heading for its worst month of the year as investors remain focused on profitability concerns and insider stock sales.
A series of SEC filings on Wednesday showed that several senior executives plan to sell SoundHound AI shares acquired through recently vested restricted stock units (RSUs). The transactions are scheduled for Thursday.
The filings indicate that company leaders, including CEO Keyvan Mohajer, Chief Product Officer James Ming Hom, Chief Scientific Officer Majid Emami, and Chief Operating Officer Michael Zagorsek, intend to dispose of shares primarily to satisfy tax withholding requirements arising from RSU vesting.
Mohajer filed a notice of the potential sale of 126,540 shares, with an estimated market value of approximately $873,126. Hom and Emami each proposed selling 28,843 shares valued at roughly $199,017.
Zagorsek submitted a filing covering 64,994 shares with an estimated value of approximately $448,459.
SoundHound AI stock traded over 1% higher in Thursday’s premarket.
SoundHound generated first-quarter revenue of $44.2 million, representing a 52% increase from the same period a year earlier. Management also reiterated its expectation for 2026 revenue to range between $225 million and $260 million.
The company has expanded its AI products and increased adoption among retail and automotive customers, including its OASYS platform. However, growing losses have made investors cautious as markets become more focused on profitability.
Investors are also evaluating SoundHound’s planned acquisition of LivePerson. (LPSN). While the company believes the combination could expand revenue opportunities over the coming years, integrating the two businesses may create near-term costs and operational challenges.
On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. The stock saw a 38% decrease in message volume over the past one month with a 0.1% gain in number of watchers.
A user said, “ha, insiders sold again.”
Another user said, “that's a nice investment for long term, couldn't miss these prices.”
SOUN stock has declined 26% in the last 12 months.
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