SoFi Technologies (NASDAQ:SOFI) Trading 4.2% Higher - Time to Buy?

Key Points

• SoFi shares rose 4.2% to about $19, helped by investor enthusiasm over SoFiUSD’s expansion into real-world payments and a proposed $300 million liquidity pool.
• The company reported strong quarterly results, with EPS of $0.12 and revenue of $1.21 billion, up 42.5% year over year. Its stock also moved above its 50-day and 200-day moving averages.
• Risks remain, including a valuation near 40 times earnings, high volatility, and a predominantly “Hold” analyst consensus with an average price target of $22.42; several insiders have also sold shares under pre-arranged plans.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares shot up 4.2% on Tuesday . The company traded as high as $19.02 and last traded at $19.00. Approximately 40,001,066 shares traded hands during trading, a decline of 42% from the average daily volume of 68,419,398 shares. The stock had previously closed at $18.24.

More SoFi Technologies News

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

• Positive Sentiment: SoFiUSD expands the growth narrative: SoFi is moving its SoFiUSD stablecoin beyond a crypto-focused product toward real-world payments, including 24/7 transfers and an initial $300 million liquidity pool. Investors may view the initiative as a potential new payments and transaction-revenue opportunity. SoFi Technologies Stablecoin Push: Can SoFiUSD Scale Payments?
• Positive Sentiment: Crypto-related investor interest lifted fintech stocks: The SoFiUSD announcement placed SoFi alongside cryptocurrency exchanges benefiting from renewed stablecoin enthusiasm. This helped attract buying interest despite a broadly subdued financial sector. SoFi Rises as the Stablecoin Trade Pulls Fintech Into the Crypto Bid
• Positive Sentiment: Technical setup improved: SOFI moved back above its 50-day and 200-day simple moving averages, which could encourage momentum-oriented investors. Piper Sandler’s recent “overweight” rating and $22 price target also provide a favorable reference point, although the broader analyst consensus remains “Hold.” SoFi Stock Is Trending: A Key Level Just Came Into Play
• Neutral Sentiment: SoFi’s latest quarterly results were stronger than expected, with earnings of $0.12 per share and revenue of $1.21 billion, up 42.5% year over year. However, the next major catalyst may depend on whether the stablecoin initiative can generate material payments volume and profits.
• Negative Sentiment: Executive Vice President Kelli Keough sold 11,286 shares worth approximately $203,000 under a pre-arranged Rule 10b5-1 plan. The planned nature and relatively small size reduce the signal, but the transaction still represents a 3.07% reduction in her direct holdings.
• Negative Sentiment: Valuation remains a risk. A recent analysis characterized SOFI as overvalued, while the stock trades at roughly 38–40 times earnings and carries high volatility, reflected by its beta of 2.17.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on the company. The Goldman Sachs Group increased their price objective on SoFi Technologies from $17.00 to $21.00 and gave the stock a "neutral" rating in a report on Thursday, July 9th. Truist Financial boosted their price target on SoFi Technologies from $18.00 to $19.00 and gave the stock a "hold" rating in a research report on Wednesday, August 12th. Piper Sandler assumed coverage on SoFi Technologies in a research note on Monday, August 17th. They issued an "overweight" rating and a $22.00 price target for the company. Needham & Company LLC lowered their price target on SoFi Technologies from $25.00 to $24.00 and set a "buy" rating on the stock in a report on Thursday, July 30th. Finally, Citigroup cut their price objective on shares of SoFi Technologies from $37.00 to $30.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Eight equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average target price of $22.42.

SoFi Technologies Stock Up 4.2%

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 cap of $24.54 billion, a price-to-earnings ratio of 39.58 and a beta of 2.17. The stock's 50 day moving average is $17.75 and its 200 day moving average is $17.59.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.12 EPS for the quarter, topping the consensus estimate 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 return on equity of 6.22% and a net margin of 14.78%.The firm's quarterly revenue was up 42.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.08 earnings per share. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. Analysts forecast that SoFi Technologies, Inc. will post 0.61 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Jeremy Rishel sold 102,123 shares of SoFi Technologies stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $17.78, for a total transaction of $1,815,746.94. Following the transaction, the chief technology officer directly owned 895,089 shares of the company's stock, valued at $15,914,682.42. The trade was a 10.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Kelli Keough sold 11,286 shares of the business's stock in a transaction dated 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 sale, the executive vice president owned 356,442 shares in the company, valued at approximately $6,415,956. This trade represents a 3.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 136,505 shares of company stock worth $2,418,096 in the last three months. Company insiders own 2.50% of the company's stock.

Hedge Funds Weigh In On SoFi Technologies

Hedge funds have recently made changes to their positions in the business. Groupe la Francaise acquired a new stake in SoFi Technologies during the second quarter valued at approximately $631,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in SoFi Technologies during the second quarter worth approximately $9,445,000. California State Teachers Retirement System grew its position in SoFi Technologies by 1,603.2% in the second quarter. California State Teachers Retirement System now owns 31,201,069 shares of the company's stock worth $559,435,000 after buying an additional 29,369,164 shares during the last quarter. Ameritas Advisory Services LLC acquired a new position in SoFi Technologies in the second quarter worth approximately $1,545,000. Finally, Wedmont Private Capital increased its holdings in shares of SoFi Technologies by 14.2% in the second quarter. Wedmont Private Capital now owns 25,195 shares of the company's stock valued at $473,000 after buying an additional 3,130 shares in the last quarter. Institutional investors and hedge funds own 38.43% of the company's stock.

About SoFi Technologies

SoFi Technologies, Inc NASDAQ: SOFI is a diversified financial services company that provides consumer-focused lending, banking, investing and financial technology products. The company's core offerings include student loan refinancing and private student loans, personal loans, mortgage lending, and credit card products. In addition to credit and lending, SoFi operates consumer-facing deposit and cash management accounts, an investing and trading platform, and an insurance marketplace through partner relationships, all designed to serve individuals seeking an integrated digital financial experience.

SoFi has grown beyond direct-to-consumer lending by building technology and infrastructure capabilities.

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.

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