Form 4: SoundHound AI CTO Sells Shares in Routine Transactions
Insider Transaction Report
SoundHound AI's Chief Technology Officer, Timothy Stonehocker, sold Class A Common Stock totaling 39,817 shares in two transactions.
Summary
- Timothy Stonehocker, Chief Technology Officer of SoundHound AI, Inc., sold 37,570 shares of Class A Common Stock on September 22, 2025, at a price of $16.0016 per share.
- This sale was conducted to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs) granted to Mr. Stonehocker on August 4, 2022, September 7, 2022, August 3, 2023, and August 1, 2024.
- An additional 2,247 shares of Class A Common Stock were sold on September 24, 2025, at a weighted-average price of $17.8999 per share, with trades ranging from $17.60 to $18.18.
- This second transaction was executed pursuant to a Rule 10b5-1 trading plan adopted by Mr. Stonehocker in December 2024.
- Following these reported transactions, Mr. Stonehocker beneficially owns 677,049 shares of SoundHound AI, Inc. Class A Common Stock.
Sentiment
Score: 6
Explanation: The sentiment is neutral to slightly positive. While insider selling can sometimes be a negative signal, the stated reasons (tax withholding and a pre-arranged 10b5-1 plan) indicate routine, non-discretionary transactions, mitigating any negative implications. The sales are also relatively small compared to total holdings.
Positives
- A significant portion of the sales was for tax withholding, which is a common and necessary event for executives receiving equity compensation.
- One transaction was effected pursuant to a Rule 10b5-1 trading plan, indicating a pre-arranged disposition rather than a discretionary sale based on new information.
Negatives
- Insider selling, even for routine reasons, can sometimes be perceived negatively by the market, potentially signaling a lack of confidence, though this is mitigated by the stated reasons.
Future Outlook
No specific forward-looking statements or guidance were provided in this filing, which primarily details past insider transactions.
Management Comments
- The sale reported herein was made to satisfy tax withholding obligations in connection with the vesting of shares of restricted stock units granted to the reporting person on August 4, 2022, September 7, 2022, August 3, 2023 and August 1, 2024.
- This transaction was effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person in December 2024.
Industry Context
This Form 4 filing is a routine disclosure of insider stock transactions and does not provide information relevant to broader industry trends or competitor analysis.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Power of Attorney Grant | Timothy Stonehocker granted a Limited Power of Attorney to Warren Heit, Nitesh Sharan, or Keyvan Mohajer to execute and file Forms 3, 4, or 5 on his behalf for Section 16(a) reporting. | 2022-05-05 | Streamlines compliance with SEC reporting requirements for insider transactions. |
Stakeholder Impact
- Shareholders: May observe a minor, routine insider sale, which is unlikely to significantly impact confidence given the stated reasons (tax obligations, 10b5-1 plan).
Key Dates
| Date | Description |
|---|---|
| 2022-05-05 | Limited Power of Attorney granted by Timothy Stonehocker for Section 16 reporting. |
| 2022-08-04 | Grant date of restricted stock units (RSUs) to Timothy Stonehocker. |
| 2022-09-07 | Grant date of restricted stock units (RSUs) to Timothy Stonehocker. |
| 2023-08-03 | Grant date of restricted stock units (RSUs) to Timothy Stonehocker. |
| 2024-08-01 | Grant date of restricted stock units (RSUs) to Timothy Stonehocker. |
| 2024-12-01 | Rule 10b5-1 trading plan adopted by Timothy Stonehocker (month/year only provided). |
| 2025-09-22 | Sale of 37,570 shares of Class A Common Stock to satisfy tax withholding obligations. |
| 2025-09-24 | Sale of 2,247 shares of Class A Common Stock under a Rule 10b5-1 trading plan. |
Recommendation
holdThis Form 4 filing details routine insider stock sales for tax purposes and under a pre-arranged 10b5-1 plan. It does not provide new fundamental information about SoundHound AI's business operations, financial performance, or strategic direction that would warrant a change in investment recommendation. The transactions are expected and do not signal a significant shift in management's outlook on the company's prospects.
Keywords
SoundHound AI, SOUN, Timothy Stonehocker, CTO, Insider Trading, Form 4, Stock Sale, Restricted Stock Units, RSU, 10b5-1 Plan, Equity Compensation
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