SoFi Technologies (NASDAQ:SOFI) Shares Climb 1.1% - Time to Buy?

Key Points

• SoFi shares rose 1.1% to $16.21 in Friday trading, on volume 31% below the average.
• The company reported quarterly revenue growth of 44.4% and earnings per share of $0.18, beating analyst estimates; management has also raised full-year guidance.
• Analyst views are mixed: the consensus rating is Hold with an average price target of $21.27. Sector-wide fintech weakness and concerns about SoFi’s valuation remain risks.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) was up 1.1% during trading on Friday. The company traded as high as $16.56 and last traded at $16.21. Approximately 43,959,553 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 63,768,320 shares. The stock had previously closed at $16.04.

Trending Headlines about SoFi Technologies

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

Analysts Set New Price Targets

SOFI has been the subject of a number of research reports. Piper Sandler started coverage on SoFi Technologies in a report on Monday, August 17th. They set an "overweight" rating and a $22.00 target price for the company. Benchmark restated a "sector outperform" rating on shares of SoFi Technologies in a research note on Wednesday, October 28th. TD Cowen upped their price target on shares of SoFi Technologies from $17.50 to $18.00 and gave the company a "hold" rating in a research note on Wednesday, October 28th. UBS Group raised their price target on shares of SoFi Technologies from $21.00 to $22.00 and gave the stock a "neutral" rating in a research report on Thursday, October 29th. Finally, Morgan Stanley lowered their price target on shares of SoFi Technologies from $16.00 to $15.00 and set an "underweight" rating on the stock in a research report on Thursday, July 30th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $21.27.

SoFi Technologies Trading Up 1.1%

The company has a quick ratio of 0.10, a current ratio of 0.74 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $20.94 billion, a P/E ratio of 29.47, a PEG ratio of 1.08 and a beta of 2.25. The firm has a 50 day moving average of $16.41 and a 200-day moving average of $17.69.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The company reported $0.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.17 by $0.01. SoFi Technologies had a return on equity of 6.89% and a net margin of 15.60%. The business had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.25 billion. During the same quarter in the prior year, the business posted $0.11 earnings per share. The firm's quarterly revenue was up 44.4% compared to the same quarter last year. On average, equities research analysts predict that SoFi Technologies, Inc. will post 0.61 earnings per share for the current fiscal year.

Insider Transactions at SoFi Technologies

In other SoFi Technologies news, EVP Kelli Keough sold 11,286 shares of the firm's stock in a transaction dated Thursday, August 20th. The shares were sold at an average price of $18.00, for a total value of $203,148.00. Following the transaction, the executive vice president directly owned 356,442 shares of the company's stock, valued at $6,415,956. This trade represents a 3.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jeremy Rishel sold 18,624 shares of the firm's stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $17.50, for a total transaction of $325,920.00. Following the completion of the transaction, the chief technology officer directly owned 912,650 shares in the company, valued at approximately $15,971,375. This represents a 2.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 50,316 shares of company stock valued at $852,605. 2.50% of the stock is owned by insiders.

Institutional Trading of SoFi Technologies

Several large investors have recently made changes to their positions in SOFI. Cornerstone Planning Group LLC increased its holdings in SoFi Technologies by 232.1% in the first quarter. Cornerstone Planning Group LLC now owns 2,099 shares of the company's stock worth $34,000 after purchasing an additional 1,467 shares in the last quarter. Compass Financial Management LLC acquired a new position in SoFi Technologies in the second quarter valued at approximately $34,000. MassMutual Private Wealth & Trust FSB lifted its stake in SoFi Technologies by 44.2% in the third quarter. MassMutual Private Wealth & Trust FSB now owns 2,248 shares of the company's stock valued at $35,000 after buying an additional 689 shares during the period. Markowski Investments bought a new position in shares of SoFi Technologies during the 2nd quarter worth approximately $38,000. Finally, Ascentis Independent Advisors bought a new position in shares of SoFi Technologies during the 1st quarter worth approximately $40,000. Institutional investors and hedge funds own 38.43% of the company's stock.

About SoFi Technologies

SoFi Technologies, Inc is a digital financial services company that provides lending, banking, investing and other personal finance products through its online platform and mobile app. The company serves consumers primarily in the United States and aims to provide a centralized alternative to traditional financial institutions.

SoFi's offerings include personal loans, student loan refinancing, home loans, checking and savings accounts, credit cards, investment products and financial education resources.

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