SoFi Technologies (NASDAQ:SOFI) Stock Falls 1% - Here's Why

Key Points

• SoFi shares fell 1% to $15.76 in midday trading, with volume about 40% below the average session level.
• The company’s fundamentals remain strong: quarterly revenue rose roughly 40% year over year, personal-loan originations reached a record $10.7 billion, and membership grew to about 15.8 million.
• Investors are focused on the October 27 earnings report amid risks from rising bond yields, funding costs and SoFi’s premium valuation. Analysts have a consensus “Hold” rating and a $22.50 price target.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report)'s stock price dropped 1% on Tuesday. The stock traded as low as $15.73 and last traded at $15.76. Approximately 38,612,467 shares were traded during mid-day trading, a decline of 40% from the average session volume of 64,684,254 shares. The stock had previously closed at $15.92.

Key SoFi Technologies News

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

• Positive Sentiment: SoFi’s second-quarter performance provides a fundamental support for the stock: revenue increased about 40% year over year, while personal-loan originations reached a record $10.7 billion, up nearly 53%. SoFi loan platform growth article
• Positive Sentiment: Customer engagement is improving: SoFi added twice as many products as members in the quarter, suggesting that existing customers are using more services. The company now has approximately 15.8 million members, supporting cross-selling and potential operating leverage. SoFi revenue and product growth article
• Positive Sentiment: Investors are watching for additional growth catalysts ahead of SoFi’s October 27 earnings report. Recent earnings exceeded expectations, and analysts see the loan-platform business and other potential growth engines as catalysts that may not yet be fully reflected in the share price. SoFi growth engine article
• Neutral Sentiment: The October 27 results will be an important near-term event. Investors will look for continued revenue growth, loan demand, member monetization and confirmation that profitability guidance remains achievable. SoFi October 27 earnings preview
• Negative Sentiment: Rising bond yields and broader pressure on bank stocks have weighed on SoFi, highlighting concerns about funding costs, loan demand and the sensitivity of its lending business to interest rates. SoFi rate pressure article
• Negative Sentiment: Even after the selloff, SoFi trades at a premium to many financial-sector peers. That valuation leaves the stock vulnerable if growth slows, credit conditions deteriorate or the October earnings report fails to provide stronger forward guidance. SoFi valuation article

Analyst Upgrades and Downgrades

SOFI has been the topic of a number of research reports. Needham & Company LLC cut their price objective on shares of SoFi Technologies from $25.00 to $24.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. The Goldman Sachs Group lifted their price objective on SoFi Technologies from $17.00 to $21.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Weiss Ratings upgraded SoFi Technologies from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, August 11th. Loop Capital started coverage on SoFi Technologies in a research report on Tuesday, September 8th. They set a "hold" rating and a $22.00 price target for the company. Finally, Piper Sandler initiated coverage on SoFi Technologies in a research report on Monday, August 17th. They issued an "overweight" rating and a $22.00 price objective on the stock. Nine analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $22.50.

SoFi Technologies Price Performance

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 $20.36 billion, a PE ratio of 32.83, a PEG ratio of 1.32 and a beta of 2.33. The stock has a 50-day moving average price of $17.47 and a 200 day moving average price of $17.19.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.01. The firm had revenue of $1.21 billion for the quarter, compared to analysts' expectations of $1.11 billion. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The firm's revenue for the quarter was up 42.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.08 EPS. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. Equities analysts forecast that SoFi Technologies, Inc. will post 0.6 EPS for the current fiscal year.

Insider Activity

In other SoFi Technologies news, EVP Kelli Keough sold 11,286 shares of the stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $18.00, for a total transaction of $203,148.00. Following the completion of the transaction, the executive vice president owned 356,442 shares of the company's stock, valued at $6,415,956. This represents a 3.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 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 in the company, valued at $15,971,375. The trade was a 2.00% decrease in their position. 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 90 days, insiders have sold 51,067 shares of company stock valued at $890,716. Insiders own 2.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of SOFI. BlackRock Inc. purchased a new stake in shares of SoFi Technologies during the 2nd quarter valued at approximately $1,298,925,000. Bank of America Corp DE purchased a new stake in SoFi Technologies in the second quarter valued at approximately $163,808,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in shares of SoFi Technologies during the second quarter worth $93,937,000. Bank of New York Mellon Corp acquired a new stake in shares of SoFi Technologies in the second quarter valued at $72,531,000. Finally, Legal & General Group Plc purchased a new stake in shares of SoFi Technologies in the 2nd quarter valued at $64,706,000. 38.43% of the stock is owned by hedge funds and other institutional investors.

About SoFi Technologies

SoFi Technologies, Inc is a financial technology company that provides digital financial services through its SoFi platform. Founded in 2011 as a student-loan refinancing business, the company has expanded into a broader digital banking and personal-finance provider serving consumers primarily in the United States.

SoFi offers products including personal loans, student-loan refinancing, home loans, checking and savings accounts, credit cards, investment accounts, and financial-planning tools.

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.