SoFi Technologies (NASDAQ:SOFI) Stock Price Down 2.7% - Should You Sell?

Key Points

• SOFI shares fell 2.7% to about $17.92, with trading volume below its average. The stock is valued at roughly $23.1 billion and trades at a price-to-earnings ratio of 37.3.
• SoFi reported strong quarterly results, including $0.12 EPS versus a $0.11 estimate, $1.21 billion in revenue, and 42.5% year-over-year revenue growth. Record loan originations of approximately $14.8 billion and a diversified business remain key positives.
• Analyst sentiment is mixed: the consensus rating is Hold with a $22.42 target price, while valuation concerns and the need to sustain originations without worsening credit quality or funding costs remain risks. Recent insider sales were conducted under pre-arranged plans, primarily to cover tax obligations.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report)'s share price traded down 2.7% on Thursday . The stock traded as low as $17.72 and last traded at $17.92. 44,246,340 shares changed hands during mid-day trading, a decline of 36% from the average daily volume of 68,847,391 shares. The stock had previously closed at $18.42.

SoFi Technologies News Roundup

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

• Positive Sentiment: SoFi was highlighted as participating in a broader fintech rebound, with bond-market moves supporting renewed interest in lending and financial-technology stocks. SoFi Climbs 6%, Upstart Jumps 8%, Affirm Rises 7% as Fintech Names Rebound With Bond Market Catalyst
• Positive Sentiment: Piper Sandler assigned SoFi an Overweight rating, adding to bullish analyst coverage and potentially supporting the stock’s recovery prospects. SoFi Earns Overweight Rating from Piper Sandler
• Positive Sentiment: Reports emphasized record loan originations of approximately $14.8 billion, suggesting continued growth in SoFi’s lending business. Its diversified revenue base, profitability and deposit funding were also viewed favorably versus Upstart. SoFi Technologies Loan Boom
• Positive Sentiment: Proposed U.S. legislation establishing clearer digital-asset rules lifted cryptocurrency and blockchain-related stocks, offering a possible sentiment boost to SoFi’s broader fintech and digital-asset exposure. Bitcoin and Crypto Shares Climb After Trump Pushes Clarity Act
• Neutral Sentiment: Although analysts have cited substantial upside following SoFi’s strong second-quarter results, investors still need evidence that rapid originations can be maintained without weakening credit quality or increasing funding costs. Analysts Project Nearly 70% Upside Following Strong Q2
• Negative Sentiment: Valuation remains a headwind: some analyses say SOFI trades at a premium to estimated fair value, while commentators warn that fintech stocks may be priced for near-perfect execution. That concern may be prompting profit-taking after recent rallies. SoFi Stock Looks Rich on Fair Value Yet Strong on Returns

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on SOFI. Needham & Company LLC decreased their target price on shares of SoFi Technologies from $25.00 to $24.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. The Goldman Sachs Group boosted their price target on SoFi Technologies from $17.00 to $21.00 and gave the company a "neutral" rating in a research note on Thursday, July 9th. Stephens lowered their price objective on SoFi Technologies from $26.00 to $25.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. Piper Sandler started coverage on SoFi Technologies in a research report on Monday. They set an "overweight" rating and a $22.00 target price for the company. Finally, Mizuho reduced their target price on SoFi Technologies from $29.00 to $22.00 and set an "outperform" rating on the stock in a report on Friday, July 31st. Eight analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $22.42.

SoFi Technologies Stock Down 2.7%

The firm's 50-day moving average price is $17.66 and its 200 day moving average price is $17.67. 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 company has a market capitalization of $23.14 billion, a price-to-earnings ratio of 37.33 and a beta of 2.17.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.01. The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.11 billion. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The firm's revenue for the quarter was up 42.5% on a year-over-year basis. During the same quarter last year, the business posted $0.08 EPS. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. On average, sell-side analysts forecast that SoFi Technologies, Inc. will post 0.61 EPS for the current fiscal year.

Insider Buying and Selling

In other 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 sale, the chief technology officer directly owned 895,089 shares of the company's stock, valued at approximately $15,914,682.42. This trade represents a 10.24% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through 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 10,954 shares of SoFi Technologies stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $17.19, for a total transaction of $188,299.26. Following the sale, the executive vice president owned 367,728 shares in the company, valued at approximately $6,321,244.32. This represents a 2.89% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 125,219 shares of company stock worth $2,214,948. 2.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in SOFI. Vanguard Group Inc. lifted its holdings in shares of SoFi Technologies by 3.6% in the 4th quarter. Vanguard Group Inc. now owns 111,003,107 shares of the company's stock worth $2,906,061,000 after purchasing an additional 3,900,895 shares in the last quarter. BlackRock Inc. bought a new stake in SoFi Technologies during the 2nd quarter valued at $1,298,925,000. State Street Corp raised its holdings in SoFi Technologies by 6.7% during the fourth quarter. State Street Corp now owns 25,937,928 shares of the company's stock worth $679,055,000 after buying an additional 1,637,430 shares during the last quarter. Geode Capital Management LLC raised its holdings in SoFi Technologies by 9.0% during the fourth quarter. Geode Capital Management LLC now owns 23,642,936 shares of the company's stock worth $618,395,000 after buying an additional 1,951,248 shares during the last quarter. Finally, Morgan Stanley lifted its stake in shares of SoFi Technologies by 33.6% in the fourth quarter. Morgan Stanley now owns 13,323,366 shares of the company's stock valued at $348,806,000 after buying an additional 3,350,258 shares in the last quarter. 38.43% of the stock is owned by institutional investors.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source