Insider Trading March 24, 2026

SoundHound AI CTO completes $156,767 share sale to cover RSU tax withholding

Timothy Stonehocker sold 23,087 shares as the stock trades near its 52-week low amid mixed analyst signals and executive turnover

By Derek Hwang SOUN
SoundHound AI CTO completes $156,767 share sale to cover RSU tax withholding
SOUN

SoundHound AI Chief Technology Officer Timothy Stonehocker sold 23,087 shares of Class A Common Stock on March 20, 2026, for about $156,767, at $6.7903 per share. The sale, disclosed in a Form 4 filed March 24, 2026, satisfied tax-withholding obligations tied to the vesting of restricted stock units granted across 2022, 2023 and 2024. The stock is trading close to its 52-week low, while recent quarterly revenue beat estimates and analysts issued divergent guidance. The company also announced a temporary CFO transition ahead of a search for a permanent successor and plans to demonstrate on-device AI at NVIDIA GTC 2026.

Key Points

  • CTO Timothy Stonehocker sold 23,087 shares on March 20, 2026, for approximately $156,767 at $6.7903 per share, to satisfy tax-withholding obligations tied to restricted stock unit vesting - impacts corporate governance and insider activity monitoring.
  • SoundHound AI reported Q4 fiscal 2025 revenue of $55.1 million, beating both H.C. Wainwrights $52.1 million estimate and the $54.0 million consensus, prompting mixed analyst reactions that affect software sector sentiment.
  • Company announced CFO Nitesh Sharan will leave in April 2026 and that co-founder James Hom will serve as interim CFO; SoundHound will also demonstrate its on-device, multimodal AI platform for vehicles at NVIDIA GTC 2026 (Booth #1844) - relevant to the AI, software and automotive tech sectors.

SoundHound AI, Inc. (NASDAQ: SOUN) reported an internal share sale involving its technology chief. Chief Technology Officer Timothy Stonehocker sold 23,087 shares of the companys Class A Common Stock on March 20, 2026, generating proceeds of roughly $156,767. The shares changed hands at a price of $6.7903 each.

The transaction was disclosed to the Securities and Exchange Commission in a Form 4 filing dated March 24, 2026. According to that filing, the disposition was executed to satisfy tax withholding obligations associated with the vesting of restricted stock units that had been granted to the reporting individual on August 4, 2022; August 3, 2023; and August 1, 2024. The Form 4 was signed by Warren Heit, acting as attorney-in-fact for Timothy Stonehocker.

After the sale, Stonehockers direct ownership in SoundHound AI stands at 521,092 shares.


Market context and share performance

The insider sale comes as SoundHound AIs share price sits close to its 52-week low of $6.36. The stock has declined by 19% over the last week and is down 64% compared with six months ago. An InvestingPro analysis cited in public disclosures indicates the stock appears overvalued relative to its Fair Value estimate and shows the company carrying a market capitalization of $2.91 billion.


Recent operating results and analyst reaction

SoundHound AI reported fourth-quarter fiscal 2025 revenue of $55.1 million. That result exceeded both H.C. Wainwrights estimate of $52.1 million and the consensus estimate of $54.0 million. Following the quarterly release, D.A. Davidson reiterated a Buy rating and left its $14.00 price target in place, citing strong revenue driven by broad-based demand. H.C. Wainwright, while maintaining a Buy rating, reduced its price target to $20 from $26, citing near-term valuation pressures among software providers as the reason for the adjustment.


Leadership changes and product showcases

SoundHound AI also disclosed an upcoming leadership transition. Chief Financial Officer Nitesh Sharan is set to depart the company in April 2026 to take a role in quantum computing. Co-founder and Chief Product Officer James Hom will assume the CFO responsibilities on an interim basis while the company conducts a search for a permanent replacement.

Separately, SoundHound AI plans to demonstrate its multimodal, multilingual agentic AI platform at NVIDIA GTC 2026. The company indicated the demonstration will take place at Booth #1844 and will highlight on-device AI capabilities that remove the need for cloud connectivity, enabling vehicles to process a range of commands locally.


What the filing and recent developments show

The Form 4 sale reflects a common mechanism executives use to satisfy tax obligations tied to equity awards rather than an unrestricted open-market divestiture. At the same time, the companys recent revenue beat sits alongside analyst moves that reflect differing views on valuation, and an announced CFO departure introduces a management transition to monitor. The planned product demonstration at NVIDIA GTC 2026 underscores the companys focus on on-device AI applications for vehicles.

Risks

  • Near-term valuation pressures among software providers have prompted at least one analyst to lower a price target, indicating continued market sensitivity in the software sector.
  • A change in the companys finance leadership with the CFO departing in April 2026 creates short-term management uncertainty that investors and counterparties may monitor closely.
  • The stock is trading near its 52-week low and has declined materially over recent periods - ongoing share-price weakness could continue to influence investor sentiment in both equity and corporate financing markets.

More from Insider Trading

Snowflake EVP completes share moves totaling more than $910,000 amid company growth and mixed analyst views Mar 24, 2026 CrowdStrike CEO Sells $13.1 Million in Stock to Cover RSU Taxes; Company Rolls Out New Security Services Mar 24, 2026 CrowdStrike CFO Sells $6.53 Million in Stock to Cover RSU Tax Withholdings Mar 24, 2026 CrowdStrike President Sells $7.9 Million in Stock to Cover RSU Taxes; Company Rolls Out New Security Services Mar 24, 2026 CrowdStrike CFO Accounting Executive Sells $467,786 in Company Stock Mar 24, 2026