SoFi Technologies (NASDAQ:SOFI) Stock Price Down 3.9% - Here's What Happened

Key Points

• SoFi shares fell 3.9% to $15.63, with trading volume 29% below its average.
• SoFi launched an interest-bearing tokenized deposit product and expanded its SoFiUSD stablecoin to Polygon. The advertised 4.40% variable yield could boost deposits but may also raise funding costs and pressure profitability.
• Recent quarterly results beat estimates, with revenue up 44.4% year over year. Analyst views remain mixed: the consensus rating is Hold, with an average price target of $21.27.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) was down 3.9% on Thursday. The stock traded as low as $15.61 and last traded at $15.63. 44,892,938 shares traded hands during trading, a decline of 29% from the average session volume of 63,436,730 shares. The stock had previously closed at $16.27.

Key Headlines Impacting SoFi Technologies

Investors following SOFI have been watching these headlines:

• Positive Sentiment: SoFi launched SoFi Earn, an interest-bearing tokenized deposit product, and its SoFiUSD stablecoin became available on Polygon in addition to Ethereum and Solana. These moves could broaden its deposit and payments offerings, though their financial contribution is not yet clear. Article: SoFi Technologies Introduced The First Tokenized Deposit Product At A US Bank Article: SoFi’s Bank-Issued Stablecoin SoFiUSD Goes Live on Polygon
• Positive Sentiment: ARK Invest reportedly bought about $6.8 million of SoFi shares, a notable institutional vote of confidence. Scotiabank also reiterated its $26 price target. Article: Cathie Wood Sees Something in SoFi Article: Could SoFi Actually Climb 59%?
• Negative Sentiment: The new deposit offer advertises a variable 4.40% yield. If attracting deposits at that rate weighs on funding costs, it could limit profitability. More broadly, SoFi’s growth outlook depends on turning free or low-revenue products into profitable customer relationships. Article: SoFi's 4.40% Deposit Offer Could Be a Smart Move. Here's the Risk. Article: SoFi's Record Profits Hide 1 Number That Could Decide Its 2027 Growth

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Benchmark restated a "sector outperform" rating on shares of SoFi Technologies in a report on Wednesday, October 28th. Bank of America reaffirmed an "underperform" rating and issued a $16.50 price target on shares of SoFi Technologies in a report on Wednesday, October 28th. UBS Group increased their price objective on shares of SoFi Technologies from $21.00 to $22.00 and gave the stock a "neutral" rating in a report on Thursday, October 29th. Loop Capital started coverage on shares of SoFi Technologies in a research report on Tuesday, September 8th. They issued a "hold" rating and a $22.00 price objective for the company. Finally, Scotiabank restated a "sector outperform" rating and issued a $26.00 price objective (up from $25.00) on shares of SoFi Technologies in a research report on Wednesday, October 28th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $21.27.

SoFi Technologies Trading Down 3.9%

The stock has a market cap of $20.19 billion, a price-to-earnings ratio of 28.42, a P/E/G ratio of 1.02 and a beta of 2.25. The business has a 50-day simple moving average of $16.28 and a two-hundred day simple moving average of $17.51. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.10 and a current ratio of 0.74.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last announced its quarterly earnings data on Tuesday, October 27th. The company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.17 by $0.01. SoFi Technologies had a net margin of 15.60% and a return on equity of 6.81%. The business had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.25 billion. During the same quarter in the previous year, the firm posted $0.11 earnings per share. The firm's revenue for the quarter was up 44.4% on a year-over-year basis. As a group, research analysts forecast that SoFi Technologies, Inc. will post 0.61 EPS for the current year.

Insiders Place Their Bets

In other news, CTO Jeremy Rishel sold 18,624 shares of the company's stock in a transaction on Monday, September 21st. The stock was sold at an average price of $17.50, for a total transaction of $325,920.00. Following the completion of the sale, 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 position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kelli Keough sold 10,203 shares of the firm's 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 completion of the transaction, the executive vice president owned 397,870 shares in the company, valued at $5,856,646.40. The trade was a 2.50% 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. Over the last quarter, insiders have sold 50,316 shares of company stock valued at $852,605. Corporate insiders own 2.50% of the company's stock.

Institutional Trading of SoFi Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. acquired a new stake in shares of SoFi Technologies in the 2nd quarter valued at $1,298,925,000. Bank of America Corp DE acquired a new position in shares of SoFi Technologies during the 2nd quarter worth $163,808,000. Dimensional Fund Advisors LP lifted its position in shares of SoFi Technologies by 4.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 9,106,532 shares of the company's stock worth $144,539,000 after buying an additional 359,785 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in shares of SoFi Technologies during the 2nd quarter worth $93,937,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in SoFi Technologies by 4.2% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 4,925,068 shares of the company's stock valued at $88,306,000 after buying an additional 198,336 shares in the last quarter. Institutional investors own 38.43% of the company's stock.

About SoFi Technologies

SoFi Technologies, Inc. is a U.S.-based digital financial services company that offers consumer lending, banking and investment products through its online platform. Its services include personal, student and home loans, deposit accounts, credit cards and investment offerings. Founded in 2011 as Social Finance, the company initially focused on student loan refinancing before expanding into a broader range of financial services. SoFi also provides financial technology infrastructure through businesses including Galileo, which supports payment processing and other services for financial institutions and fintech companies.

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.