SoFi Technologies (NASDAQ:SOFI) Stock Falls 7.7% - Should You Sell?

Key Points

• SoFi shares fell 7.7% to $16.04 on Thursday, with trading volume 21% above its daily average. The decline was linked to broader fintech-sector pressure amid falling Bitcoin and political uncertainty.
• Recent results were stronger than expected: SoFi reported quarterly EPS of $0.18 versus $0.17 expected, revenue of $1.37 billion versus $1.25 billion expected, and 44.4% year-over-year revenue growth.
• Analyst views remain mixed: Zacks upgraded SoFi to Buy, but MarketBeat’s consensus rating is Hold, with a $21.27 target price. One analysis also cautioned that SoFi’s valuation premium could make the stock vulnerable if growth or sentiment weakens.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares fell 7.7% on Thursday. The stock traded as low as $15.43 and last traded at $16.04. Approximately 77,249,710 shares were traded during trading, an increase of 21% from the average daily 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: Zacks upgraded SoFi to Rank #2 (Buy), citing improving earnings prospects. Truist also forecast strong potential price appreciation, adding support to the bullish analyst case. Zacks rating upgrade Truist forecast
• Positive Sentiment: SoFi and other fintech shares advanced in the prior session after Block reported stronger-than-expected results and raised its outlook, suggesting sector sentiment can improve when peers deliver. Fintech rally after Block results
• Neutral Sentiment: One analysis says SoFi has consistently beaten revenue targets, but warns its valuation premium could leave the shares vulnerable if growth or investor sentiment disappoints. SoFi revenue and valuation analysis
• Negative Sentiment: The immediate pressure appears sector-wide rather than specific to SoFi: an article attributes fintech losses to falling Bitcoin and political uncertainty in Washington. This could weigh on sentiment toward consumer-facing fintech stocks despite the analyst upgrade. Fintech stocks pressured by crypto and politics

Analyst Upgrades and Downgrades

SOFI has been the topic of several recent research reports. Wells Fargo & Company restated a "negative" rating on shares of SoFi Technologies in a research report on Wednesday, October 28th. Scotiabank reaffirmed a "sector outperform" rating and set a $26.00 price objective (up from $25.00) on shares of SoFi Technologies in a research report on Wednesday, October 28th. Needham & Company LLC reiterated a "buy" rating and issued a $24.00 target price on shares of SoFi Technologies in a research note on Wednesday, October 28th. Benchmark restated a "sector outperform" rating on shares of SoFi Technologies in a research note on Wednesday, October 28th. Finally, Stonex Financial raised SoFi Technologies to a "strong-buy" rating in a report on Monday, October 12th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $21.27.

SoFi Technologies Price Performance

The company has a current ratio of 0.74, a quick ratio of 0.10 and a debt-to-equity ratio of 0.30. The stock has a fifty day simple moving average of $16.47 and a two-hundred day simple moving average of $17.74. The company has a market cap of $20.72 billion, a PE ratio of 29.16, a price-to-earnings-growth ratio of 1.04 and a beta of 2.25.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last issued its 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 during the quarter, compared to the consensus estimate of $1.25 billion. During the same period in the prior year, the business posted $0.11 EPS. The company's revenue for the quarter was up 44.4% on a year-over-year basis. On average, equities analysts predict that SoFi Technologies, Inc. will post 0.61 EPS for the current fiscal 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 transaction of $325,920.00. Following the transaction, the chief technology officer directly owned 912,650 shares of the company's stock, valued at $15,971,375. This represents a 2.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 dated Thursday, August 20th. The shares were 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 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. Insiders sold 50,316 shares of company stock valued at $852,605 in the last quarter. 2.50% of the stock is currently owned by company insiders.

Institutional Trading of SoFi Technologies

A number of institutional investors have recently added to or reduced their stakes in SOFI. BlackRock Inc. acquired a new position in SoFi Technologies during the second quarter valued at approximately $1,298,925,000. Bank of America Corp DE acquired a new stake in shares of SoFi Technologies in the second quarter valued at about $163,808,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in SoFi Technologies in the second quarter valued at approximately $93,937,000. Bank of New York Mellon Corp purchased a new stake in SoFi Technologies during the 2nd quarter worth $72,531,000. Finally, Legal & General Group Plc acquired a new position in shares of SoFi Technologies in the second quarter worth about $64,706,000. Hedge funds and other institutional investors 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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