SoFi Technologies (NASDAQ:SOFI) Stock Price Down 4.2% - Should You Sell?

Key Points

• Muddy Waters accused SoFi of improper accounting and misrepresenting its loan portfolio, and investor Steve Eisman warned the securitization/private-credit issues could be "potentially a disaster," creating near-term reputational and execution risk as SoFi has strongly rebutted the claims and flagged possible legal action.
• CEO Anthony Noto bought 28,900 shares and SoFi announced loan-platform agreements totaling $3.6 billion+, moves management frames as a vote of confidence that should boost fee revenue and scale originations.
• Shares fell 4.2% to $15.87 and trade below both the 50- and 200-day moving averages, with analysts holding a consensus "Hold" rating and a $25.91 target price.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares fell 4.2% during trading on Thursday . The stock traded as low as $15.81 and last traded at $15.87. 58,452,227 shares changed hands during mid-day trading, a decline of 10% from the average session volume of 64,786,086 shares. The stock had previously closed at $16.56.

SoFi Technologies News Summary

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

• Positive Sentiment: CEO Anthony Noto bought 28,900 shares, a high-profile insider purchase management framed as a vote of confidence amid the controversy. CEO Anthony Noto Just Bought 28,900 Shares of SoFi Stock. Should You Back Up the Truck?
• Positive Sentiment: SoFi announced expansion of its Loan Platform Business with agreements to deliver >$3.6 billion in personal loans across three partnerships (including a >$1B relationship and a $600M conduit), which should boost fee revenue and scale originations. SoFi Expands Loan Platform Business with Multiple New Agreements Totaling Over $3.6 Billion
• Neutral Sentiment: Some market reports say the stock “shrugged off” a short-seller attack, suggesting investors are split on the allegations’ impact versus SoFi’s fundamentals and growth path. A notorious short-seller unloaded on SoFi. The stock shrugged it off
• Neutral Sentiment: Published short-interest figures in recent reports look inconsistent or unreliable (entries showing zero/NaN), so days-to-cover/short ratios may not be informative until cleaner data is available.
• Negative Sentiment: Muddy Waters Research publicly accused SoFi of improper accounting and misrepresenting its loan portfolio, triggering sharp scrutiny of securitization practices and funding. SoFi has strongly rebutted the claims and flagged potential legal action, but the allegations raise near-term execution and reputational risk. SoFi Short-Seller Clash Puts Accounting Quality And Valuation In Focus
• Negative Sentiment: Investor Steve Eisman warned that SoFi’s securitization/private-credit issues could be “potentially a disaster,” amplifying fears around credit quality and funding if a broader credit cycle emerges. 'Big Short' Legend Steve Eisman Says SoFi's Private Credit Problems Could Be 'Potentially A Disaster'

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Truist Financial cut their price target on shares of SoFi Technologies from $28.00 to $21.00 and set a "hold" rating for the company in a report on Wednesday, February 18th. UBS Group set a $24.50 price target on shares of SoFi Technologies in a research note on Monday, February 2nd. Citizens Jmp upgraded SoFi Technologies from a "market perform" rating to an "outperform" rating and set a $30.00 price objective on the stock in a report on Monday, February 9th. Wells Fargo & Company initiated coverage on SoFi Technologies in a report on Thursday, March 19th. They set an "equal weight" rating and a $19.00 target price for the company. Finally, Bank of America initiated coverage on SoFi Technologies in a research report on Tuesday, January 6th. They issued an "underperform" rating and a $20.50 target price on the stock. Seven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $25.91.

SoFi Technologies Stock Performance

The company has a market cap of $20.24 billion, a PE ratio of 41.76 and a beta of 2.20. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.18 and a current ratio of 0.78. The firm's 50 day moving average is $20.46 and its 200-day moving average is $25.19.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last issued its earnings results on Friday, January 30th. The company reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.12 by $0.01. SoFi Technologies had a return on equity of 5.88% and a net margin of 13.34%.The business had revenue of $1.01 billion for the quarter, compared to analysts' expectations of $984.75 million. During the same period in the previous year, the firm posted $0.05 EPS. The business's revenue for the quarter was up 39.6% compared to the same quarter last year. SoFi Technologies has set its Q1 2026 guidance at 0.120- EPS and its FY 2026 guidance at 0.600- EPS. On average, research analysts anticipate that SoFi Technologies, Inc. will post 0.26 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, General Counsel Robert S. Lavet purchased 5,000 shares of the stock in a transaction dated Friday, February 6th. The shares were purchased at an average price of $21.04 per share, with a total value of $105,200.00. Following the transaction, the general counsel owned 17,172 shares in the company, valued at $361,298.88. The trade was a 41.08% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Kelli Keough sold 9,742 shares of the company's stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $16.94, for a total transaction of $165,029.48. Following the completion of the sale, the executive vice president directly owned 343,026 shares of the company's stock, valued at $5,810,860.44. This represents a 2.76% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders acquired 38,900 shares of company stock worth $705,398 and sold 218,148 shares worth $4,161,735. Insiders own 2.60% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SOFI. Lake Street Private Wealth LLC raised its position in SoFi Technologies by 4.9% in the fourth quarter. Lake Street Private Wealth LLC now owns 8,368 shares of the company's stock valued at $219,000 after purchasing an additional 390 shares during the period. Xcel Wealth Management LLC grew its holdings in shares of SoFi Technologies by 0.6% during the 3rd quarter. Xcel Wealth Management LLC now owns 70,932 shares of the company's stock worth $1,874,000 after purchasing an additional 392 shares during the period. Capital Advisors Wealth Management LLC increased its position in shares of SoFi Technologies by 0.4% during the 4th quarter. Capital Advisors Wealth Management LLC now owns 109,483 shares of the company's stock worth $2,866,000 after purchasing an additional 401 shares during the last quarter. First Horizon Corp raised its holdings in SoFi Technologies by 14.9% in the 4th quarter. First Horizon Corp now owns 3,116 shares of the company's stock valued at $82,000 after buying an additional 405 shares during the period. Finally, Cigna Investments Inc. New boosted its stake in SoFi Technologies by 3.8% during the fourth quarter. Cigna Investments Inc. New now owns 11,440 shares of the company's stock worth $299,000 after buying an additional 416 shares during the period. 38.43% of the stock is currently owned by hedge funds and other 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.

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