Form 4: SoundHound AI CSO Sells Shares for Tax Obligations
Insider Transaction Report
SoundHound AI's Chief Science Officer, Majid Emami, sold 31,019 shares of Class A Common Stock to cover tax withholding obligations related to vested restricted stock units.
Summary
- Majid Emami, CSO & SVP, Engineering, Director, and 10% Owner of SoundHound AI, Inc. (SOUN), reported a sale of company stock.
- On March 20, 2026, Emami disposed of 31,019 shares of Class A Common Stock at a price of $6.7903 per share.
- The total value of the shares sold is approximately $210,630.01.
- The sale was conducted to satisfy tax withholding obligations arising from the vesting of restricted stock units granted on August 4, 2022, August 3, 2023, August 1, 2024, and July 31, 2025.
- Following this transaction, Emami directly beneficially owns 501,826 shares of Class A Common Stock.
Sentiment
Score: 5
Explanation: StockSavvy.ai views this as a neutral event. The sale is for tax purposes related to RSU vesting, which is a standard practice and not a discretionary sale indicating a change in insider sentiment.
Positives
- The transaction is a routine event related to compensation and tax obligations, not a discretionary sale indicating a lack of confidence in the company's future.
Negatives
- A reduction in insider ownership, even if for tax purposes, slightly decreases the direct alignment of insider interests with public shareholders.
Future Outlook
The filing does not contain any forward-looking statements or guidance.
Industry Context
StockSavvy.ai notes that sales of shares by insiders to cover tax withholding obligations upon the vesting of restricted stock units are a common and routine occurrence across all industries. This type of transaction is generally not indicative of an insider's view on the company's future prospects but rather a standard compensation and tax management practice.
Comparison to Industry Standards
- Not applicable. This filing reports a routine insider transaction for tax purposes, which does not lend itself to comparison with specific company projects or industry benchmarks.
Related Party Transactions
- The sale of shares by Majid Emami to satisfy tax withholding obligations related to vested restricted stock units is a transaction between a company insider and the company's equity, which is a common form of related-party transaction in the context of executive compensation.
Stakeholder Impact
- Shareholders: The transaction represents a minor reduction in direct insider ownership, which is a common occurrence when restricted stock units vest and taxes are paid.
- Employees: No direct impact on the broader employee base is indicated by this filing.
Key Dates
| Date | Description |
|---|---|
| 2022-05-05 | Date of Limited Power of Attorney granted by Majid Emami. |
| 2022-08-04 | Grant date of restricted stock units, part of which vested and led to the reported sale. |
| 2023-08-03 | Grant date of restricted stock units, part of which vested and led to the reported sale. |
| 2024-08-01 | Grant date of restricted stock units, part of which vested and led to the reported sale. |
| 2025-07-31 | Grant date of restricted stock units, part of which vested and led to the reported sale. |
| 2026-03-20 | Transaction date for the sale of Class A Common Stock. |
| 2026-03-24 | Signature date of the Form 4 filing. |
Recommendation
holdThe transaction is a routine, non-discretionary sale by an insider to cover tax obligations upon the vesting of restricted stock units. It does not reflect a change in the insider's confidence in the company's future or fundamental performance. Therefore, it provides no new information that would warrant a change in investment recommendation based solely on this filing.
Keywords
SoundHound AI, SOUN, Insider Trading, Form 4, Stock Sale, Restricted Stock Units, Tax Withholding, Majid Emami, Corporate Officer, Director
Disclaimer:The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.