SoFi Technologies (NASDAQ:SOFI) Stock Price Up 2.7% - Should You Buy?

Key Points

• SoFi shares rose 2.7% to $14.68 in Tuesday trading, although volume was 30% below the average session level and the stock remains below its 50-day and 200-day moving averages.
• Analysts are divided ahead of the upcoming earnings report: Benchmark upgraded the stock to “Strong Buy” and StoneX initiated a “Buy” rating, while Keefe Bruyette & Woods cut its price target to $15. The consensus rating is “Hold,” with an average price target of $22.20.
• Expectations for the earnings release are positive after SoFi’s previous quarter beat estimates with $0.12 EPS and $1.21 billion in revenue, up 42.5% year over year; investors will focus on member growth, lending trends, credit quality, profitability and forward guidance.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares traded up 2.7% during trading on Tuesday. The stock traded as high as $14.99 and last traded at $14.68. 44,774,504 shares traded hands during trading, a decline of 30% from the average session volume of 63,854,910 shares. The stock had previously closed at $14.30.

More SoFi Technologies News

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

• Positive Sentiment: Benchmark upgraded SoFi to “Strong Buy,” providing a fresh bullish catalyst and signaling confidence in the company’s growth prospects. Benchmark upgrades SoFi Technologies stock to Strong Buy
• Positive Sentiment: Wall Street expects earnings growth and a potential earnings beat when SoFi reports next week. The company’s prior quarter included $0.12 in earnings per share and $1.21 billion in revenue, both ahead of consensus, while revenue grew sharply year over year. SoFi earnings expectations
• Positive Sentiment: StoneX initiated coverage with a Buy rating, adding another favorable analyst opinion as investors assess SoFi’s digital-banking expansion and revenue growth. StoneX initiates coverage of SoFi Technologies with Buy rating
• Neutral Sentiment: SoFi is scheduled to release earnings on Tuesday. The event is likely to keep volatility elevated because investors will focus on member growth, lending trends, credit quality, profitability and forward guidance. SoFi Technologies earnings release date
• Negative Sentiment: Keefe Bruyette & Woods lowered its price target to $15, reflecting more cautious valuation or industry expectations and limiting some of the upside implied by bullish analyst coverage. Keefe Bruyette Woods cuts SoFi price target
• Negative Sentiment: SoFi recently declined even as the broader market advanced, indicating lingering investor concerns ahead of earnings. The shares also trade below their 50-day and 200-day moving averages, underscoring weakened technical momentum. SoFi stock dips while market gains

Analyst Ratings Changes

A number of research firms have recently weighed in on SOFI. Scotiabank initiated coverage on SoFi Technologies in a research report on Wednesday, September 2nd. They issued a "sector outperform" rating and a $25.00 price objective for the company. The Goldman Sachs Group set a $15.00 price target on SoFi Technologies in a report on Tuesday, October 13th. Mizuho dropped their price target on SoFi Technologies from $29.00 to $22.00 and set an "outperform" rating on the stock in a research note on Friday, July 31st. Weiss Ratings lowered SoFi Technologies from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, October 6th. Finally, Piper Sandler assumed coverage on shares of SoFi Technologies in a research report on Monday, August 17th. They issued an "overweight" rating and a $22.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $22.20.

SoFi Technologies Stock Performance

The stock has a market capitalization of $18.96 billion, a price-to-earnings ratio of 30.58, a P/E/G ratio of 0.84 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. The firm has a 50-day moving average of $17.01 and a 200-day moving average of $17.11.

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

Insider Transactions at SoFi Technologies

In related news, EVP Kelli Keough sold 10,203 shares of SoFi Technologies stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $16.99, for a total transaction of $173,348.97. Following the completion of the sale, the executive vice president owned 408,073 shares of the company's stock, valued at $6,933,160.27. The trade was a 2.44% decrease in their ownership of the stock. 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, CTO Jeremy Rishel sold 18,624 shares of the company's stock in a transaction that occurred 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 sale, the chief technology officer owned 912,650 shares in the company, valued at approximately $15,971,375. This represents 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. Insiders have sold 40,113 shares of company stock valued at $702,417 in the last ninety days. Corporate insiders own 2.50% of the company's stock.

Institutional Trading of SoFi Technologies

Several institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in shares of SoFi Technologies during the 2nd quarter valued at about $1,298,925,000. Bank of America Corp DE purchased a new position in shares of SoFi Technologies in the 2nd quarter valued at about $163,808,000. Dimensional Fund Advisors LP raised its holdings in SoFi Technologies by 4.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 9,106,532 shares of the company's stock worth $144,539,000 after purchasing an additional 359,785 shares during the period. Sumitomo Mitsui Trust Group Inc. raised its holdings in SoFi Technologies by 2.8% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,689,426 shares of the company's stock worth $90,348,000 after purchasing an additional 156,218 shares during the period. Finally, Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in SoFi Technologies in the 2nd quarter worth about $93,937,000. 38.43% of the stock is currently owned by institutional investors and hedge funds.

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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