SoFi Technologies (NASDAQ:SOFI) Trading 3% Higher - Should You Buy?

Key Points

• SoFi Technologies shares rose 3% in mid-day trading, reaching as high as $15.72, though trading volume was below average.
• Recent coverage has been mixed: bullish notes point to SoFi as an undervalued high-growth stock, while negative sentiment has come from a decline in technology platform revenue, unchanged guidance, accounting concerns, and macro pressure from higher Treasury yields.
• Analysts remain cautious overall, with a consensus rating of “Hold” and an average price target of $22.56, even as some insiders and analysts show confidence through buying and overweight ratings.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares traded up 3% during mid-day trading on Wednesday . The stock traded as high as $15.72 and last traded at $15.69. 44,191,378 shares were traded during mid-day trading, a decline of 31% from the average session volume of 63,678,953 shares. The stock had previously closed at $15.23.

Key Stories Impacting SoFi Technologies

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

• Positive Sentiment: Several articles highlight SoFi as a beaten-down high-growth name trading under $20, with investors arguing the selloff may be overdone given its still-strong operating trends and longer-term growth potential. 2 High-Growth Stocks Under $20 That Make for Screaming Buys Right Now
• Positive Sentiment: Investor interest has also been supported by insider buying, with reports that SoFi’s CEO purchased 70,000 shares using personal funds, a signal often viewed as confidence in the company’s outlook. The SoFi CEO Just Bought 70,000 Shares With His Own Money. Here Are Four More Under $30 Worth a Closer Look
• Neutral Sentiment: SoFi’s presentation at the J.P. Morgan Global Technology, Media and Communications Conference kept the company in the spotlight, but the event itself did not provide a clear new catalyst. SoFi Technologies, Inc. (SOFI) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript
• Negative Sentiment: Recent coverage says SoFi’s stock has faced pressure after its technology platform revenue declined, guidance was left unchanged, and a short-seller report raised questions about accounting, all of which have weighed on sentiment. SoFi Growth Faces Scrutiny As Guidance Steady And Revenue Mix Shifts
• Negative Sentiment: Broader macro worries have also hurt the stock, as rising Treasury yields and inflation fears pushed investors away from higher-valuation growth names like SoFi. Stock Market Today, May 19: SoFi Technologies Extends Losses on Cautious Sentiment

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. Stephens lowered their price target on SoFi Technologies from $26.00 to $25.00 and set an "overweight" rating for the company in a research report on Thursday, April 30th. Wells Fargo & Company lowered their price target on SoFi Technologies from $19.00 to $18.00 and set an "equal weight" rating for the company in a research report on Thursday, April 9th. Weiss Ratings raised SoFi Technologies from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, May 8th. Morgan Stanley set a $16.00 price target on SoFi Technologies in a research report on Thursday, April 30th. Finally, The Goldman Sachs Group reiterated a "neutral" rating and issued a $17.00 price objective on shares of SoFi Technologies in a report on Thursday, April 30th. Seven equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $22.56.

SoFi Technologies Price Performance

The firm has a fifty day moving average of $16.95 and a 200 day moving average of $22.33. The company has a market capitalization of $20.13 billion, a P/E ratio of 35.66 and a beta of 2.12. 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 released its quarterly earnings data on Wednesday, April 29th. The company reported $0.12 EPS for the quarter, hitting the consensus estimate of $0.12. SoFi Technologies had a return on equity of 6.25% and a net margin of 14.65%.The company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same period last year, the company earned $0.06 EPS. SoFi Technologies's revenue for the quarter 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 anticipate that SoFi Technologies, Inc. will post 0.59 EPS for the current year.

Insider Buying and Selling

In other SoFi Technologies news, CTO Jeremy Rishel sold 94,958 shares of the business's stock in a transaction dated 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 sale, the chief technology officer directly owned 839,640 shares in the company, valued at $14,634,925.20. The trade was a 10.16% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Anthony Noto purchased 15,545 shares of the business's stock in a transaction on Monday, May 11th. The shares were purchased at an average price of $16.00 per share, with a total value of $248,720.00. Following the completion of the purchase, the chief executive officer owned 11,946,619 shares in the company, valued at approximately $191,145,904. This trade represents a 0.13% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders sold 124,197 shares of company stock worth $2,191,758. 2.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On SoFi Technologies

Large investors have recently made changes to their positions in the company. Norris Financial Group LLC bought a new position in shares of SoFi Technologies during the 1st quarter valued at approximately $828,000. Western Wealth Management LLC bought a new stake in SoFi Technologies during the 1st quarter worth approximately $110,000. Centaurus Financial Inc. lifted its holdings in SoFi Technologies by 549.3% during the first quarter. Centaurus Financial Inc. now owns 72,374 shares of the company's stock valued at $1,149,000 after purchasing an additional 61,228 shares in the last quarter. Arkadios Wealth Advisors lifted its holdings in SoFi Technologies by 16.9% during the first quarter. Arkadios Wealth Advisors now owns 73,370 shares of the company's stock valued at $1,165,000 after purchasing an additional 10,587 shares in the last quarter. Finally, Claris Financial LLC lifted its holdings in SoFi Technologies by 168.8% during the first quarter. Claris Financial LLC now owns 22,074 shares of the company's stock valued at $340,000 after purchasing an additional 13,863 shares in the last quarter. 38.43% of the stock is currently 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.

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