Form 4: SoundHound AI VP of Engineering Sells Over 132,000 Shares Under Pre-Arranged Trading Plan
Insider Transaction Report
Majid Emami, VP of Engineering and a 10% owner of SoundHound AI, Inc., sold 132,352 shares of Class A Common Stock for approximately $1.33 million under a Rule 10b5-1 trading plan.
Summary
- Majid Emami, VP of Engineering, Director, and a 10% owner of SoundHound AI, Inc. (SOUN), reported the sale of 132,352 shares of Class A Common Stock.
- The transaction occurred on June 10, 2025, at a weighted-average price of $10.0407 per share, with individual trades ranging from $10.00 to $10.12.
- The total value of the shares sold is approximately $1,329,999.
- Following this transaction, Mr. Emami directly beneficially owns 537,482 shares of Class A Common Stock.
- The sale was executed pursuant to a Rule 10b5-1 trading plan, which was adopted by Mr. Emami in March 2025.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While an insider sale can sometimes be perceived negatively, the fact that it was conducted under a pre-arranged Rule 10b5-1 plan mitigates concerns that it's based on new, adverse information. It's a routine disclosure for planned liquidity events.
Positives
- The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating it was not based on new, non-public information and was scheduled in advance, which can mitigate negative investor interpretations.
Negatives
- An insider sale, even if pre-planned, can sometimes be perceived negatively by investors as it reduces the insider's direct stake in the company.
Risks
- Potential for negative investor sentiment due to an insider selling a significant number of shares, even if pre-planned, which could lead to short-term stock price volatility.
Future Outlook
The document does not provide any forward-looking statements or guidance regarding the company's future performance or strategic direction, as it is a disclosure of an insider transaction.
Industry Context
This Form 4 filing details an insider stock sale, which is a routine disclosure for publicly traded companies. It does not provide broader industry context or trends, but rather focuses on an individual's transaction within the AI and voice technology sector.
Corporate Governance
| Change Type | Description | Effective Date | Impact Assessment |
|---|---|---|---|
| Power of Attorney Grant | Majid Emami 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 in accordance with Section 16(a) of the Securities Exchange Act of 1934. | 2022-05-05 | Streamlines the process for insider reporting requirements, ensuring timely and compliant filings for Mr. Emami's transactions. |
Stakeholder Impact
- Shareholders: May observe a reduction in insider ownership, which could be interpreted in various ways, though the 10b5-1 plan mitigates negative implications regarding new information.
Key Dates
| Date | Description |
|---|---|
| 2022-05-05 | Date of Limited Power of Attorney for reporting under Section 16(a) granted by Majid Emami. |
| 2025-03 | Month in which the Rule 10b5-1 trading plan was adopted by Majid Emami. |
| 2025-06-10 | Date of the reported transaction (sale of Class A Common Stock). |
| 2025-06-12 | Date the Form 4 was signed. |
Recommendation
holdKeywords
SoundHound AI, SOUN, SEC Form 4, Insider Trading, Stock Sale, Majid Emami, Rule 10b5-1, Beneficial Ownership, Class A Common Stock, Corporate Governance
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