SoFi Technologies (NASDAQ:SOFI) Shares Down 5.8% - Should You Sell?

Key Points

• SoFi Technologies' shares fell 5.8% during mid-day trading, with the stock trading as low as $20.60 before closing at $21.27, significantly lower than its previous close of $22.58.
• Analysts have mixed opinions on the stock; while Truist Financial and Stephens set price targets at $20.00, Morgan Stanley maintains an "underweight" rating with a price objective of $13.00.
• Insider trading activity showed a substantial amount of shares sold recently, with two executives selling a total of 273,181 shares valued at over $4 million, indicating potential concerns about the company's future.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report)'s share price was down 5.8% during mid-day trading on Friday . The company traded as low as $20.60 and last traded at $21.27. Approximately 41,841,033 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 60,490,191 shares. The stock had previously closed at $22.58.

Analysts Set New Price Targets

A number of research analysts recently issued reports on SOFI shares. Truist Financial lifted their price target on SoFi Technologies from $14.00 to $20.00 and gave the company a "hold" rating in a report on Thursday, July 17th. Stephens started coverage on SoFi Technologies in a report on Thursday, June 12th. They issued an "overweight" rating and a $20.00 price target for the company. Citizens Jmp cut SoFi Technologies from a "strong-buy" rating to a "market perform" rating in a report on Monday, July 14th. Rothschild & Co Redburn started coverage on SoFi Technologies in a report on Friday. They set a "neutral" rating and a $20.50 price objective for the company. Finally, Morgan Stanley reissued an "underweight" rating and set a $13.00 price objective (up from $11.00) on shares of SoFi Technologies in a report on Wednesday. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $18.06.

SoFi Technologies Price Performance

The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.14 and a current ratio of 0.80. The company has a 50-day moving average of $17.43 and a 200-day moving average of $14.82. The firm has a market capitalization of $23.56 billion, a price-to-earnings ratio of 44.53, a price-to-earnings-growth ratio of 2.57 and a beta of 1.91.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The company reported $0.08 earnings per share for the quarter, topping analysts' consensus estimates of $0.06 by $0.02. SoFi Technologies had a return on equity of 4.51% and a net margin of 18.38%. The firm had revenue of $519.37 million during the quarter, compared to the consensus estimate of $801.94 million. During the same quarter in the prior year, the firm posted $0.01 EPS. The business's revenue was up 42.8% on a year-over-year basis. As a group, research analysts anticipate that SoFi Technologies, Inc. will post 0.26 EPS for the current fiscal year.

Insiders Place Their Bets

In other SoFi Technologies news, CTO Jeremy Rishel sold 66,847 shares of the firm's stock in a transaction on Friday, June 20th. The stock was sold at an average price of $15.55, for a total transaction of $1,039,470.85. Following the completion of the sale, the chief technology officer owned 724,321 shares of the company's stock, valued at $11,263,191.55. This trade represents a 8.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Magdalena Yesil sold 87,140 shares of the firm's stock in a transaction on Tuesday, June 10th. The shares were sold at an average price of $14.39, for a total value of $1,253,944.60. Following the sale, the director directly owned 289,258 shares of the company's stock, valued at $4,162,422.62. This represents a 23.15% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 273,181 shares of company stock valued at $4,043,240 in the last quarter. 2.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On SoFi Technologies

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in SoFi Technologies by 1.1% during the 1st quarter. Vanguard Group Inc. now owns 99,467,295 shares of the company's stock valued at $1,156,805,000 after purchasing an additional 1,130,250 shares during the last quarter. Two Sigma Advisers LP bought a new position in SoFi Technologies during the 4th quarter worth $299,980,000. Geode Capital Management LLC increased its position in SoFi Technologies by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 17,934,983 shares of the company's stock worth $276,288,000 after buying an additional 315,899 shares during the period. Charles Schwab Investment Management Inc. increased its position in SoFi Technologies by 2.5% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 6,472,726 shares of the company's stock worth $75,278,000 after buying an additional 159,109 shares during the period. Finally, Northern Trust Corp increased its position in SoFi Technologies by 22.7% during the 4th quarter. Northern Trust Corp now owns 6,052,301 shares of the company's stock worth $93,205,000 after buying an additional 1,121,550 shares during the period. Institutional investors and hedge funds own 38.43% of the company's stock.

About SoFi Technologies

SoFi Technologies, Inc provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money.

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