SoFi Technologies (NASDAQ:SOFI) Stock Price Down 7.7% – Should You Sell?

SoFi Technologies, Inc. (NASDAQ:SOFI) shares were down 7.7% during trading on Thursday. The company traded as low as $15.43 and last traded at $16.04. 77,249,710 shares changed hands during trading, an increase of 21% from the average session volume of 63,840,098 shares. The stock had previously closed at $17.38.

Key SoFi Technologies News

Here are the key news stories impacting SoFi Technologies this week:

• Positive Sentiment: Analyst sentiment has improved: SoFi received a Zacks Rank #2 (Buy), and reports cited an analyst upgrade and potential upside of about 29% based on average price targets. Positive earnings-estimate revisions may also support the outlook. Zacks rating upgrade Analyst price targets
• Positive Sentiment: SoFi’s adjusted net revenue grew 44% in its latest reported quarter, and management raised its full-year guidance. These fundamentals offer support even though the stock has surrendered its post-earnings gains and remains well below its peak. SoFi growth and guidance
• Negative Sentiment: A crypto-led sell-off has weighed on retail-focused fintech shares, including SoFi, as Bitcoin fell and investors retreated from the sector. This broader market pressure may offset company-specific optimism in the near term. Fintech sell-off
• Negative Sentiment: One recent analysis warned that SoFi’s valuation remains steep, a potential risk if growth or earnings expectations disappoint. Valuation analysis

Wall Street Analysts Forecast Growth

SOFI has been the topic of several research reports. Needham & Company LLC reaffirmed a “buy” rating and issued a $24.00 price objective on shares of SoFi Technologies in a research report on Wednesday, October 28th. Monness Crespi & Hardt assumed coverage on SoFi Technologies in a research note on Monday, October 26th. They issued a “buy” rating and a $20.00 price objective on the stock. Scotiabank reaffirmed a “sector outperform” rating and set a $26.00 price objective (up from $25.00) on shares of SoFi Technologies in a report on Wednesday, October 28th. Truist Financial increased their target price on shares of SoFi Technologies from $16.00 to $17.00 and gave the stock a “hold” rating in a research report on Tuesday. Finally, Morgan Stanley reduced their target price on shares of SoFi Technologies from $16.00 to $15.00 and set an “underweight” rating for the company in a research note on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $21.27.

SoFi Technologies Stock Performance

The company has a 50-day moving average price of $16.35 and a two-hundred day moving average price of $17.65. The stock has a market capitalization of $20.94 billion, a P/E ratio of 29.47, a PEG ratio of 1.04 and a beta of 2.25. The company has a quick ratio of 0.10, a current ratio of 0.74 and a debt-to-equity ratio of 0.30.

SoFi Technologies (NASDAQ:SOFI) last released its quarterly earnings data on Tuesday, October 27th. The company reported $0.18 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.01. The company had revenue of $1.37 billion during the quarter, compared to analyst estimates of $1.25 billion. SoFi Technologies had a net margin of 15.60% and a return on equity of 6.89%. SoFi Technologies’s revenue was up 44.4% compared to the same quarter last year. During the same period last year, the business earned $0.11 earnings per share. Equities analysts expect that SoFi Technologies, Inc. will post 0.61 earnings per share for the current year.

Insider Buying and Selling at SoFi Technologies

In other news, CTO Jeremy Rishel sold 18,624 shares of the company’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $17.50, for a total value of $325,920.00. Following the transaction, the chief technology officer owned 912,650 shares of the company’s stock, valued at approximately $15,971,375. This represents a 2.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kelli Keough sold 11,286 shares of the stock in a transaction on Thursday, August 20th. The stock was sold at an average price of $18.00, for a total value of $203,148.00. Following the completion of the sale, the executive vice president owned 356,442 shares in the company, valued at $6,415,956. This trade represents a 3.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 50,316 shares of company stock valued at $852,605. Insiders own 2.50% of the company’s stock.

Hedge Funds Weigh In On SoFi Technologies

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cornerstone Planning Group LLC raised its holdings in shares of SoFi Technologies by 232.1% in the 1st quarter. Cornerstone Planning Group LLC now owns 2,099 shares of the company’s stock valued at $34,000 after acquiring an additional 1,467 shares in the last quarter. Compass Financial Management LLC bought a new position in shares of SoFi Technologies in the second quarter worth approximately $34,000. MassMutual Private Wealth & Trust FSB increased its position in shares of SoFi Technologies by 44.2% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 2,248 shares of the company’s stock worth $35,000 after purchasing an additional 689 shares during the last quarter. Markowski Investments purchased a new stake in SoFi Technologies in the second quarter valued at approximately $38,000. Finally, Ascentis Independent Advisors purchased a new stake in SoFi Technologies in the first quarter valued at approximately $40,000. 38.43% of the stock is currently owned by hedge funds and other institutional investors.

About SoFi Technologies

SoFi Technologies, Inc is a U.S.-based digital financial services company that offers consumer lending, banking and investment products through its online platform. Its services include personal, student and home loans, deposit accounts, credit cards and investment offerings.

Founded in 2011 as Social Finance, the company initially focused on student loan refinancing before expanding into a broader range of financial services. SoFi also provides financial technology infrastructure through businesses including Galileo, which supports payment processing and other services for financial institutions and fintech companies.

SoFi primarily serves consumers in the United States.