SoFi Technologies (NASDAQ:SOFI) Shares Down 1% - Here's Why

Key Points

• SOFI shares fell 1% to $14.46 in mid-day trading, with volume 33% below the stock’s average daily volume.
• Analyst sentiment is mixed: Monness Crespi & Hardt initiated coverage with a Buy rating and a $20 target, while Truist cut its target to $16; the broader consensus remains Hold with an average target of $21.95.
• Upcoming earnings are the key catalyst. Investors will assess membership growth, lending, deposits, fee revenue, credit quality and profitability, following the company’s prior quarter of $1.21 billion in revenue and $0.12 EPS.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report)'s share price dropped 1% during mid-day trading on Monday. The company traded as low as $14.40 and last traded at $14.46. 42,317,187 shares changed hands during mid-day trading, a decline of 33% from the average daily volume of 63,360,488 shares. The stock had previously closed at $14.61.

SoFi Technologies News Roundup

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

• Positive Sentiment: Analyst initiates coverage with a Buy rating: Monness Crespi & Hardt set a $20 price target, implying substantial upside from recent levels. Monness Crespi & Hardt coverage
• Positive Sentiment: New tokenized-deposit initiative: SoFi plans to launch retail, interest-bearing tokenized deposits, potentially expanding its digital-finance ecosystem and creating longer-term fee and deposit-growth opportunities. SoFi tokenized deposits
• Positive Sentiment: Growth expectations remain favorable: Analysts and commentators point to record second-quarter additions of approximately 1.1 million members, a total membership base near 15 million, strong lending demand, deeper engagement and rising fee income as potential drivers of solid third-quarter revenue and earnings growth. SoFi Q3 growth outlook
• Neutral Sentiment: Earnings are the immediate catalyst: SOFI has not issued specific third-quarter guidance. Investors will focus on membership growth, loan originations, deposits, fee-based revenue, credit quality and whether profitability is keeping pace with revenue growth. SoFi Q3 earnings preview
• Negative Sentiment: Price-target reduction signals caution: Truist lowered its target to $16, reflecting more limited expected upside and potentially softer sentiment ahead of the report. Truist target reduction
• Negative Sentiment: Insider selling adds pressure: Executive Kelli Keough sold 10,203 shares under a prearranged Rule 10b5-1 plan. The planned nature reduces its significance, but the sale can still weigh on sentiment. SoFi executive stock sale

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on SOFI. Truist Financial lowered their price objective on shares of SoFi Technologies from $19.00 to $16.00 and set a "hold" rating for the company in a research report on Friday. Stonex Financia upgraded SoFi Technologies to a "strong-buy" rating in a research note on Monday, October 12th. Morgan Stanley decreased their price target on SoFi Technologies from $16.00 to $15.00 and set an "underweight" rating on the stock in a research note on Thursday, July 30th. Wells Fargo & Company lowered their price target on SoFi Technologies from $18.00 to $17.00 and set an "equal weight" rating for the company in a research report on Thursday, July 30th. Finally, Needham & Company LLC dropped their price objective on SoFi Technologies from $25.00 to $24.00 and set a "buy" rating for the company in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $21.95.

SoFi Technologies Trading Down 1.0%

The company has a debt-to-equity ratio of 0.30, a current ratio of 0.74 and a quick ratio of 0.10. The firm has a market cap of $18.68 billion, a PE ratio of 30.13, a price-to-earnings-growth ratio of 0.85 and a beta of 2.33. The company's 50 day moving average price is $16.74 and its 200 day moving average price is $17.08.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.01. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The firm had revenue of $1.21 billion for the quarter, compared to the consensus estimate of $1.11 billion. During the same period in the prior year, the firm earned $0.08 EPS. The firm's revenue for the quarter was up 42.5% on a year-over-year basis. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. As a group, analysts forecast that SoFi Technologies, Inc. will post 0.60 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Kelli Keough sold 10,203 shares of the stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $14.72, for a total value of $150,188.16. Following the sale, the executive vice president directly owned 397,870 shares in the company, valued at approximately $5,856,646.40. This trade represents a 2.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 SoFi Technologies 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 completion of the transaction, the chief technology officer owned 912,650 shares of the company's stock, valued at approximately $15,971,375. This trade 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. Insiders have sold 50,316 shares of company stock worth $852,605 in the last ninety days. Corporate insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On SoFi Technologies

A number of hedge funds have recently bought and sold shares of SOFI. Apollon Wealth Management LLC increased its stake in shares of SoFi Technologies by 38.6% during the third quarter. Apollon Wealth Management LLC now owns 24,456 shares of the company's stock worth $384,000 after buying an additional 6,813 shares during the period. Kingswood Wealth Advisors LLC lifted its stake in SoFi Technologies by 7.6% in the third quarter. Kingswood Wealth Advisors LLC now owns 18,281 shares of the company's stock worth $287,000 after acquiring an additional 1,291 shares during the last quarter. Sigma Planning Corp grew its holdings in SoFi Technologies by 1.9% during the 3rd quarter. Sigma Planning Corp now owns 81,327 shares of the company's stock worth $1,347,000 after acquiring an additional 1,549 shares in the last quarter. Signaturefd LLC grew its holdings in SoFi Technologies by 16.9% during the 3rd quarter. Signaturefd LLC now owns 12,211 shares of the company's stock worth $192,000 after acquiring an additional 1,765 shares in the last quarter. Finally, Citizens Financial Group Inc. RI grew its holdings in SoFi Technologies by 23.9% during the 3rd quarter. Citizens Financial Group Inc. RI now owns 24,253 shares of the company's stock worth $381,000 after acquiring an additional 4,686 shares in the last quarter. Institutional investors and hedge funds own 38.43% of the company's stock.

SoFi Technologies Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.