Investors Purchase High Volume of Call Options on SoFi Technologies (NASDAQ:SOFI)

Key Points

• Investors significantly increased their activity in SoFi Technologies, purchasing 602,564 call options, a rise of approximately 36% compared to the typical daily volume.
• SoFi's stock price rose to $28.14 during midday trading, with trading volume reaching 121 million shares, surpassing its average volume.
• Insider trading activity was noted with executives selling shares, including EVP Kelli Keough and CTO Jeremy Rishel, indicating a decrease in their ownership stakes.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Stock traders purchased 602,564 call options on the company. This is an increase of approximately 36% compared to the typical daily volume of 443,115 call options.

SoFi Technologies Stock Performance

Shares of NASDAQ SOFI traded up $1.78 during midday trading on Tuesday, reaching $28.14. 121,067,118 shares of the company were exchanged, compared to its average volume of 62,009,852. The stock has a fifty day simple moving average of $25.13 and a 200 day simple moving average of $18.32. The company has a current ratio of 0.80, a quick ratio of 0.14 and a debt-to-equity ratio of 0.57. The stock has a market cap of $33.70 billion, a P/E ratio of 58.63, a PEG ratio of 3.00 and a beta of 1.92. SoFi Technologies has a 1 year low of $8.26 and a 1 year high of $30.30.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 29th. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.02. SoFi Technologies had a net margin of 18.38% and a return on equity of 4.44%. The firm had revenue of $519.37 million during the quarter, compared to analysts' expectations of $801.94 million. During the same period in the prior year, the company posted $0.01 earnings per share. The firm's revenue for the quarter was up 42.8% on a year-over-year basis. SoFi Technologies has set its FY 2025 guidance at 0.310-0.310 EPS. On average, research analysts forecast that SoFi Technologies will post 0.26 earnings per share for the current fiscal year.

Insider Buying and Selling at SoFi Technologies

In other news, EVP Kelli Keough sold 10,036 shares of SoFi Technologies stock in a transaction that occurred on Thursday, September 18th. The stock was sold at an average price of $27.86, for a total value of $279,602.96. Following the sale, the executive vice president directly owned 285,410 shares of the company's stock, valued at $7,951,522.60. The trade was a 3.40% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CTO Jeremy Rishel sold 98,733 shares of the firm's stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $27.50, for a total value of $2,715,157.50. Following the completion of the transaction, the chief technology officer owned 759,553 shares in the company, valued at $20,887,707.50. The trade was a 11.50% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 129,614 shares of company stock valued at $3,452,672. 2.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in SOFI. Hazlett Burt & Watson Inc. lifted its holdings in SoFi Technologies by 2,200.0% in the 1st quarter. Hazlett Burt & Watson Inc. now owns 2,300 shares of the company's stock valued at $27,000 after purchasing an additional 2,200 shares in the last quarter. Headlands Technologies LLC purchased a new position in shares of SoFi Technologies during the first quarter valued at approximately $28,000. SVB Wealth LLC acquired a new stake in SoFi Technologies during the first quarter worth approximately $28,000. Garde Capital Inc. purchased a new stake in SoFi Technologies in the 1st quarter worth approximately $31,000. Finally, Larson Financial Group LLC grew its stake in SoFi Technologies by 127.1% in the 1st quarter. Larson Financial Group LLC now owns 2,714 shares of the company's stock worth $32,000 after acquiring an additional 1,519 shares during the period. Institutional investors and hedge funds own 38.43% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. JMP Securities reissued a "market perform" rating and set a $17.00 target price on shares of SoFi Technologies in a research note on Monday, July 14th. Stephens initiated coverage on shares of SoFi Technologies in a research report on Thursday, June 12th. They set an "overweight" rating and a $20.00 price target on the stock. Mizuho lifted their price objective on shares of SoFi Technologies from $26.00 to $31.00 and gave the company an "outperform" rating in a report on Thursday, September 18th. Needham & Company LLC increased their target price on shares of SoFi Technologies from $25.00 to $29.00 and gave the stock a "buy" rating in a report on Wednesday, September 10th. Finally, JPMorgan Chase & Co. boosted their price target on shares of SoFi Technologies from $22.00 to $24.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $20.18.

About SoFi Technologies

SoFi Technologies, Inc provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money.

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