Shares of U.S.-based SoundHound AI (SOUN) rose 1.5% at market open on Wednesday, even as insiders recently sold shares. According to SEC filings, the company’s senior leadership offloaded more than $2 million worth of stock last week. Despite this, investors don’t appear concerned. The broader AI trade remains strong, and many still see upside in SoundHound’s voice AI growth story—outweighing worries about insider selling.
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For context, SoundHound AI focuses on voice recognition and natural language processing, providing AI-powered solutions for multiple industries. Year-to-date, SOUN stock is down by 35.4%.
A Detailed Look at SOUN’s Latest Insider Moves
According to the Form 4 filings with the SEC on March 20, CSO Majid Emami and CPO James Ming Hom each sold 31,019 shares worth about $210,619. Additionally, CFO Nitesh Sharan sold 44,027 shares for $298,943, while COO Michael Zagorsek sold 52,968 shares worth $359,653. CTO Timothy Stonehocker offloaded 23,087 shares for $156,760.
Meanwhile, CEO Keyvan Mohajer led the selling, unloading 124,510 shares worth $845,423. The shares were sold at a price of $6.79 per share.
These insider sales don’t necessarily signal trouble. Executives often sell shares for routine reasons like portfolio diversification, tax planning, or pre-scheduled trading plans (10b5-1 plans). 10b5-1 plans are pre-set trading plans that company insiders use to buy or sell stock in a legal and transparent way.
Overall, SOUN stock currently shows a Very Negative Insider Confidence Signal on TipRanks, driven by informative sell transactions totaling $4.9 million over the past three months.
Is SOUN Stock a Good Buy?
According to TipRanks, SOUN stock has received a Moderate Buy consensus rating, with five Buys and two Holds assigned in the last three months. The average SoundHound stock price target is $14.50, suggesting a potential upside of 125% from the current level.
