SoFi Technologies (NASDAQ:SOFI) Stock Price Down 4.8% - Time to Sell?

Key Points

• SoFi shares fell 4.8% to $16.76, despite trading volume being roughly in line with average levels.
• The company reported its sixth consecutive earnings beat, with third-quarter revenue up 44.4% year over year to $1.37 billion and EPS of $0.18 versus the $0.17 consensus estimate. Management also issued an optimistic 2027 outlook, projecting approximately $6.4 billion in revenue and $0.90 in EPS.
• Analysts remain mixed: SoFi has a consensus “Hold” rating and an average price target of $21.23. The sell-off appears linked to profit-taking and concerns about execution against ambitious future targets rather than weak quarterly fundamentals.

Shares of SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) were down 4.8% during mid-day trading on Friday. The stock traded as low as $16.44 and last traded at $16.76. 64,044,476 shares were traded during trading, an increase of 0% from the average session volume of 63,962,238 shares. The stock had previously closed at $17.61.

Key Headlines Impacting SoFi Technologies

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

• Positive Sentiment: SoFi reported its sixth consecutive earnings beat, with third-quarter revenue rising 44% year over year to approximately $1.37 billion and EPS of $0.18 versus consensus of $0.17. Adjusted EBITDA reached a record $470 million, supported by a 34% margin. SoFi Technologies: 2027 Growth Outlook Looks Underpriced
• Positive Sentiment: Management issued its first 2027 outlook, projecting roughly $6.4 billion in revenue and $0.90 in EPS—both reportedly ahead of Wall Street expectations—and also raised its 2026 guidance. Analysts argue the outlook is not fully reflected in the stock’s valuation. SoFi Could Be Building Something Wall Street Hasn’t Fully Priced In
• Positive Sentiment: Growth is becoming more diversified: eight businesses now generate more than $100 million in annualized revenue, while member and product additions remain strong. Lower-cost deposits, expanding fee-based revenue and a 6.14% net interest margin could provide additional profit leverage. SoFi’s $745 Million Advantage Is Hiding in Deposits
• Positive Sentiment: Wells Fargo and Keefe, Bruyette & Woods issued favorable views, including a price-target increase, adding institutional support to the bullish earnings narrative. SoFi Stock Gets Price Target Boost from Keefe, Bruyette & Woods
• Neutral Sentiment: SoFi is expanding its financial-services ecosystem by offering Prudential’s digital term-life insurance through its app and moving substantial card-payment volume onto stablecoin rails. These initiatives could broaden fee revenue but remain longer-term opportunities. Anthony Noto Puts SoFi Card Volume on Stablecoin Rails
• Negative Sentiment: The stock’s decline appears tied more to profit-taking and skepticism about execution than to weak quarterly fundamentals. Commentary notes that prior earnings-driven rallies faded quickly, leaving investors focused on whether SoFi can deliver its 2027 targets over the next several quarters. SoFi’s Recent Upward Burst Means Execution Is Now a Must

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Stonex Financia upgraded SoFi Technologies to a "strong-buy" rating in a report on Monday, October 12th. Needham & Company LLC reiterated a "buy" rating and issued a $24.00 price objective on shares of SoFi Technologies in a research report on Wednesday. Mizuho dropped their price target on shares of SoFi Technologies from $29.00 to $22.00 and set an "outperform" rating for the company in a research note on Friday, July 31st. Truist Financial lowered their price target on SoFi Technologies from $19.00 to $16.00 and set a "hold" rating for the company in a research note on Friday, October 23rd. Finally, UBS Group lifted their price objective on SoFi Technologies from $21.00 to $22.00 and gave the company a "neutral" rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, SoFi Technologies presently has a consensus rating of "Hold" and an average target price of $21.23.

SoFi Technologies Stock Down 4.8%

The stock has a 50 day moving average price of $16.60 and a 200 day moving average price of $17.94. The company has a market capitalization of $21.65 billion, a P/E ratio of 30.47, a PEG ratio of 0.99 and a beta of 2.33. The company has a current ratio of 0.74, a quick ratio of 0.10 and a debt-to-equity ratio of 0.30.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last announced its earnings results on Tuesday, October 27th. The company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analyst estimates of $1.25 billion. During the same period last year, the company earned $0.11 EPS. SoFi Technologies's revenue for the quarter was up 44.4% compared to the same quarter last year. On average, research analysts anticipate that SoFi Technologies, Inc. will post 0.60 earnings per share for the current fiscal year.

Insider Buying and Selling at SoFi Technologies

In other news, EVP Kelli Keough sold 10,203 shares of the business's stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $14.72, for a total transaction of $150,188.16. Following the completion of the sale, the executive vice president directly owned 397,870 shares of the company's stock, valued at $5,856,646.40. The trade was a 2.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 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 transaction, the chief technology officer owned 912,650 shares in the company, 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. In the last three months, insiders sold 50,316 shares of company stock valued at $852,605. 2.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SoFi Technologies

Several hedge funds have recently bought and sold shares of SOFI. BlackRock Inc. purchased a new stake in SoFi Technologies during the second quarter valued at approximately $1,298,925,000. Bank of America Corp DE acquired a new position in SoFi Technologies in the 2nd quarter valued at $163,808,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of SoFi Technologies during the 2nd quarter valued at about $93,937,000. Bank of New York Mellon Corp acquired a new position in SoFi Technologies in the second quarter valued at about $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. 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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