SoFi Technologies (NASDAQ:SOFI) Trading Down 1.1% - Here's What Happened

Key Points

• SoFi Technologies fell 1.1% on Thursday, trading between $17.77 and $18.24 on heavy volume of 80.8 million shares, above its average daily volume.
• The company launched SoFi Small Business Loans, expanding its lending platform into small-business financing and potentially adding a new growth avenue for cross-selling and member engagement.
• Despite strong recent results, Wall Street remains cautious: analysts have trimmed price targets, and the stock currently carries a Hold consensus with a $22.56 average price target.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) traded down 1.1% during trading on Thursday . The stock traded as low as $17.77 and last traded at $18.24. 80,789,340 shares changed hands during mid-day trading, an increase of 19% from the average daily volume of 68,054,836 shares. The stock had previously closed at $18.44.

Key Headlines Impacting SoFi Technologies

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

• Positive Sentiment: SoFi launched SoFi Small Business Loans, a new digital-first financing product aimed at entrepreneurs, adding another growth channel and expanding its lending ecosystem. SoFi Technologies (SOFI) Launches Digital-First Small Business Loan Platform
• Positive Sentiment: The company’s lending expansion into small business loans up to $250,000 is being viewed as a way to boost cross-selling and member engagement, supporting longer-term revenue growth. SOFI Expands Lending: Can Small Business Loans Boost Growth?
• Positive Sentiment: Commentary highlighted SoFi’s strong operating momentum, including 41% revenue growth, 15 million members, and 22 million products, which supports the bullish case for the stock. Why SoFi Looks Mispriced Again
• Neutral Sentiment: Some market coverage suggested SoFi may be trading at a premium valuation after its strong multi-year rally, which could limit upside even as fundamentals improve. SoFi (SOFI) Stock Looks Fully Priced On Fair Value And Earnings
• Negative Sentiment: One article noted that SoFi’s record loan originations are not fully convincing Wall Street yet, suggesting investors remain focused on whether growth can translate into sustained profitability and valuation support. SoFi's Record Loan Originations Aren't Winning Over Wall Street. Here's the Disconnect.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. Truist Financial reduced their price target on shares of SoFi Technologies from $20.00 to $17.00 and set a "hold" rating on the stock in a research report on Tuesday, May 12th. TD Cowen lowered their price objective on shares of SoFi Technologies from $24.00 to $18.00 and set a "hold" rating for the company in a report on Thursday, April 30th. Morgan Stanley set a $16.00 price objective on SoFi Technologies in a research report on Thursday, April 30th. Barclays decreased their target price on SoFi Technologies from $28.00 to $18.00 and set an "equal weight" rating for the company in a research report on Monday, April 6th. Finally, Keefe, Bruyette & Woods dropped their price target on SoFi Technologies from $20.00 to $17.00 and set an "underperform" rating on the stock in a research report on Thursday, April 9th. Seven equities 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's stock. According to MarketBeat, SoFi Technologies currently has an average rating of "Hold" and a consensus price target of $22.56.

SoFi Technologies Price Performance

The firm has a market cap of $23.40 billion, a P/E ratio of 41.46 and a beta of 2.14. The company has a debt-to-equity ratio of 0.17, a current ratio of 0.75 and a quick ratio of 0.13. The firm's 50 day moving average is $16.90 and its 200 day moving average is $19.84.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last announced its earnings results on Wednesday, April 29th. The company reported $0.12 earnings per share for the quarter, meeting 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 the consensus estimate of $1.05 billion. During the same quarter last year, the firm earned $0.06 earnings per share. The business'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. As a group, analysts anticipate that SoFi Technologies, Inc. will post 0.59 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Anthony Noto purchased 15,545 shares of the company's stock in a transaction that occurred on Monday, May 11th. The shares were bought at an average price of $16.00 per share, for a total transaction of $248,720.00. Following the purchase, the chief executive officer directly owned 11,946,619 shares in the company, valued at approximately $191,145,904. This trade represents a 0.13% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Jeremy Rishel sold 102,123 shares of the firm's stock in a transaction dated Wednesday, June 17th. The shares were sold at an average price of $17.78, for a total transaction of $1,815,746.94. Following the sale, the chief technology officer owned 895,089 shares of the company's stock, valued at approximately $15,914,682.42. This represents a 10.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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. Over the last three months, insiders have sold 134,044 shares of company stock valued at $2,370,056. 2.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoFi Technologies

Institutional investors have recently made changes to their positions in the company. Valley Wealth Managers Inc. bought a new position in SoFi Technologies in the 4th quarter valued at approximately $25,000. Blue Trust Inc. increased its holdings in shares of SoFi Technologies by 655.2% in the 4th quarter. Blue Trust Inc. now owns 1,012 shares of the company's stock worth $26,000 after purchasing an additional 878 shares in the last quarter. Vermillion Wealth Management Inc. increased its holdings in shares of SoFi Technologies by 283.1% in the 4th quarter. Vermillion Wealth Management Inc. now owns 1,000 shares of the company's stock worth $26,000 after purchasing an additional 739 shares in the last quarter. Central Pacific Bank Trust Division purchased a new position in shares of SoFi Technologies in the fourth quarter worth $28,000. Finally, Reflection Asset Management bought a new position in shares of SoFi Technologies during the fourth quarter valued at $28,000. Hedge funds and other institutional investors own 38.43% of the company's stock.

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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