SoundHound AI (SOUN) CEO Moves to Sell $27 Million of Company Stock

The CEO of SoundHound AI (SOUN) has moved to sell $27 million worth of company stock that he owns. In a regulatory filing with the U.S. Securities and Exchange Commission (SEC), SoundHound AI CEO Keyvan Mohajer outlined plans to sell up to 2.4 million Class B shares, and up to 737,500 Class A shares through a Rule 10b5-1 plan. Total proceeds of the sales would net the CEO $27 million based on the current share price. Rule 10b5-1 plans are meant to remove any advantage, or impression of an advantage, that a company insider might have from knowledge of nonpublic information. The stock sales automatically execute when preset parameters such as price, volume, and timing are met. Difficult Moment News of the CEO’s stock sale comes after SoundHound AI last week delayed filing its 10-K form, an annual report, because it needs “additional time to prepare the financial statements and the accompanying notes.” That news sent SOUN stock down sharply. The shares are down 56% in the past month. The company cited the “complexity of accounting” for two separate acquisitions as the reason for the annual report delay. However, this isn’t the CEO’s first stock sale. Last year, Mohajer sold 2.9 million SoundHound shares for $28.9 million at an average price of $9.85 each using previous trading plans. SOUN stock has been one of the best performers of the past year, having gained more than 800% in 2024 and surpassing the performance of most other equities. Founded in 2005, SoundHound provides a voice AI platform that enables businesses to offer customized conversational experiences to consumers. Is SOUN Stock a Buy? The stock of SoundHound AI has a consensus Moderate Buy rating among five Wall Street analysts. That rating is based on three Buy and two Hold recommendations assigned in the last three months. The average SOUN price target of $15.80 implies 82.66% upside from current levels. Read more analyst ratings on SOUN stock Questions or Comments about the article? Write to editor@tipranks.com