SoFi Technologies (NASDAQ:SOFI) Shares Down 3.6% - Should You Sell?

Key Points

• SoFi Technologies shares fell 3.6% on Wednesday, trading as low as $15.83 amid heavier-than-normal volume, with 85.4 million shares changing hands versus a 65.7 million average.
• The company is getting attention for its AI push, including the launch of SoFi Coach, an AI-powered financial assistant that could support higher-margin growth and strengthen its long-term fintech story.
• Despite recent revenue growth and an earnings beat, analyst sentiment remains mixed: several firms cut price targets, and the stock now carries a consensus Hold rating with an average target price of $22.56.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) traded down 3.6% during mid-day trading on Wednesday . The company traded as low as $15.83 and last traded at $15.87. 85,429,813 shares traded hands during mid-day trading, an increase of 30% from the average session volume of 65,669,570 shares. The stock had previously closed at $16.47.

More SoFi Technologies News

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

• Positive Sentiment: SoFi launched SoFi Coach, an AI-powered financial assistant that delivers personalized insights to members, reinforcing the company’s push into higher-margin, tech-enabled services and supporting the bullish case for future growth. SoFi Technologies (SOFI) Announces the Launch of SoFi Coach
• Positive Sentiment: Another article highlighted SoFi’s use of artificial intelligence and argued that the initiative could be a game-changer, which may be helping investors focus on product innovation rather than short-term volatility. Here's How SoFi Is Using Artificial Intelligence (AI) and Why It Matters. Hint: It Could Be a Game-Changer.
• Neutral Sentiment: Several broker-related stories mentioned SoFi in connection with the upcoming SpaceX IPO, noting that investors who flip IPO shares too quickly could lose future allocation access through brokers including SoFi. This is more of a platform/industry note than a direct business driver. The SpaceX IPO Is Nearly Here. How Brokers Could Punish Selling Your Shares Quickly.
• Neutral Sentiment: Market commentary also referred to SoFi as a potential long-term fintech winner and a stock worth watching, while another note said short interest was effectively unchanged at zero, offering little immediate trading impact.
• Negative Sentiment: Broader investor concern remains that cash-burning fintech names can face dilution or funding pressure if profitability stalls, which may be weighing on sentiment toward SoFi despite its growth narrative. 1 Cash-Burning Stock for Long-Term Investors and 2 We Ignore

Analyst Ratings Changes

Several research firms recently weighed in on SOFI. Truist Financial cut their target price on shares of SoFi Technologies from $20.00 to $17.00 and set a "hold" rating for the company in a research note on Tuesday, May 12th. Wells Fargo & Company cut their target price on shares of SoFi Technologies from $19.00 to $18.00 and set an "equal weight" rating for the company in a research note on Thursday, April 9th. TD Cowen cut their target price on shares of SoFi Technologies from $24.00 to $18.00 and set a "hold" rating for the company in a research note on Thursday, April 30th. Mizuho set a $29.00 target price on shares of SoFi Technologies in a research note on Wednesday, May 6th. Finally, Needham & Company LLC cut their target price on shares of SoFi Technologies from $33.00 to $25.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Seven research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $22.56.

SoFi Technologies Stock Down 3.6%

The firm has a market capitalization of $20.36 billion, a PE ratio of 36.07 and a beta of 2.14. The business's 50 day simple moving average is $16.76 and its 200 day simple moving average is $21.02. The company has a current ratio of 0.75, a quick ratio of 0.13 and a debt-to-equity ratio of 0.17.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The company reported $0.12 EPS for the quarter, hitting analysts' consensus estimates of $0.12. SoFi Technologies had a net margin of 14.65% and a return on equity of 6.25%. The business had revenue of $1.09 billion during the quarter, compared to analysts' expectations of $1.05 billion. During the same period last year, the company posted $0.06 EPS. The business's revenue was up 42.6% on a year-over-year basis. SoFi Technologies has set its FY 2026 guidance at 0.600- EPS. On average, equities research analysts forecast that SoFi Technologies, Inc. will post 0.59 earnings per share for the current year.

Insiders Place Their Bets

In other SoFi Technologies news, EVP Kelli Keough sold 10,037 shares of SoFi Technologies stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $15.53, for a total value of $155,874.61. Following the completion of the transaction, the executive vice president directly owned 323,247 shares of the company's stock, valued at $5,020,025.91. This trade represents a 3.01% decrease in their position. The sale was disclosed in a 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 94,958 shares of SoFi Technologies stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $17.43, for a total transaction of $1,655,117.94. Following the completion of the transaction, the chief technology officer directly owned 839,640 shares of the company's stock, valued at $14,634,925.20. The trade was a 10.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 124,479 shares of company stock valued at $2,163,556 in the last three months. Corporate insiders own 2.60% of the company's stock.

Hedge Funds Weigh In On SoFi Technologies

A number of institutional investors and hedge funds have recently made changes to their positions in SOFI. Brighton Jones LLC lifted its holdings in shares of SoFi Technologies by 2.0% in the 4th quarter. Brighton Jones LLC now owns 719,288 shares of the company's stock worth $11,077,000 after acquiring an additional 14,281 shares during the last quarter. Caxton Associates LLP bought a new stake in shares of SoFi Technologies in the 1st quarter worth about $129,000. Empowered Funds LLC lifted its holdings in shares of SoFi Technologies by 5.2% in the 1st quarter. Empowered Funds LLC now owns 33,126 shares of the company's stock worth $385,000 after acquiring an additional 1,631 shares during the last quarter. Franklin Resources Inc. lifted its holdings in shares of SoFi Technologies by 23.2% in the 2nd quarter. Franklin Resources Inc. now owns 13,796 shares of the company's stock worth $251,000 after acquiring an additional 2,596 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of SoFi Technologies in the 2nd quarter worth about $4,633,000. 38.43% of the stock is owned by hedge funds and other institutional investors.

SoFi Technologies Company Profile

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.

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