SoFi Technologies (NASDAQ:SOFI) Trading Down 1.6% - Here's What Happened

Key Points

• SoFi shares fell 1.6% on Wednesday, trading as low as $17.36 amid heavy volume of about 120.4 million shares, well above its average daily volume.
• Recent news was mostly positive, including SoFi helping retail investors access the SpaceX IPO and CEO Anthony Noto buying more shares, but the stock still faces skepticism over valuation and execution.
• Wall Street remains cautious overall: analysts’ consensus rating is Hold with an average price target of $22.56, even though SoFi recently reported strong quarterly revenue growth and remained profitable.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares were down 1.6% during trading on Wednesday . The company traded as low as $17.36 and last traded at $17.42. Approximately 120,367,116 shares were traded during trading, an increase of 81% from the average daily volume of 66,486,258 shares. The stock had previously closed at $17.71.

SoFi Technologies News Roundup

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

• Positive Sentiment: SoFi helped retail customers gain access to the SpaceX IPO, boosting its profile and potentially increasing platform activity as the company expands its investing offering. SoFi (SOFI) Opened SpaceX IPO Access To Retail Investors Through Its Platform
• Positive Sentiment: CEO Anthony Noto bought more SoFi shares again, which can signal insider confidence in the company’s outlook. SoFi CEO Buys Shares for the Fifth Time This Year
• Positive Sentiment: Analysts highlighted SoFi’s growing product ecosystem and cross-buy trends, which support deeper customer relationships and better economics over time. SoFi's Productivity Loop Strengthens Customer Relationships
• Neutral Sentiment: Recent commentary continues to argue that SoFi’s financial results are improving, with record revenue and continued GAAP profitability, but the market is still questioning the stock’s valuation and book-value accounting. SOFI: The Market Distrusts The Book, The Numbers Say Otherwise
• Negative Sentiment: Despite the positive headlines, multiple reports note that SoFi shares have been under heavy pressure this year and remain well below recent highs, suggesting investors still have concerns about valuation and execution. Here's What's Behind SoFi's Big Decline -- and What You Should Do About It

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on SOFI shares. Mizuho set a $29.00 price objective on shares of SoFi Technologies in a research report on Wednesday, May 6th. Morgan Stanley set a $16.00 price objective on shares of SoFi Technologies in a research report on Thursday, April 30th. Keefe, Bruyette & Woods lowered their price objective on shares of SoFi Technologies from $20.00 to $17.00 and set an "underperform" rating on the stock in a research report on Thursday, April 9th. Citigroup lowered their price objective on shares of SoFi Technologies from $37.00 to $30.00 and set a "buy" rating on the stock in a research report on Monday, May 4th. Finally, Needham & Company LLC lowered their price objective on shares of SoFi Technologies from $33.00 to $25.00 and set a "buy" rating on the stock in a research report on Thursday, April 30th. Seven investment analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $22.56.

SoFi Technologies Price Performance

The company has a quick ratio of 0.13, a current ratio of 0.75 and a debt-to-equity ratio of 0.17. The company has a market capitalization of $22.35 billion, a P/E ratio of 39.59 and a beta of 2.14. The company's 50-day simple moving average is $16.87 and its 200 day simple moving average is $20.67.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $0.12 EPS for the quarter, hitting the consensus estimate of $0.12. The company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.05 billion. SoFi Technologies had a net margin of 14.65% and a return on equity of 6.25%. The company's revenue for the quarter was up 42.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.06 earnings per share. SoFi Technologies has set its FY 2026 guidance at 0.600- EPS. As a group, sell-side analysts expect that SoFi Technologies, Inc. will post 0.58 earnings per share for the current fiscal year.

Insider Activity at SoFi Technologies

In other SoFi Technologies news, EVP Kelli Keough sold 10,037 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $15.53, for a total value of $155,874.61. Following the completion of the sale, the executive vice president directly owned 323,247 shares of the company's stock, valued at $5,020,025.91. The trade was a 3.01% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Anthony Noto acquired 15,545 shares of SoFi Technologies stock in a transaction dated Monday, May 11th. The stock was 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 directly owned 11,946,619 shares of the company's stock, valued at $191,145,904. The trade was a 0.13% increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 29,521 shares of company stock valued at $508,438 over the last three months. Insiders own 2.50% of the company's stock.

Institutional Trading of SoFi Technologies

A number of institutional investors and hedge funds have recently modified their holdings of the company. Pine Valley Investments Ltd Liability Co lifted its stake in shares of SoFi Technologies by 84.8% in the first quarter. Pine Valley Investments Ltd Liability Co now owns 23,605 shares of the company's stock worth $375,000 after buying an additional 10,830 shares during the last quarter. NewEdge Advisors LLC lifted its stake in shares of SoFi Technologies by 24.7% in the first quarter. NewEdge Advisors LLC now owns 402,635 shares of the company's stock worth $6,394,000 after buying an additional 79,819 shares during the last quarter. Cozad Asset Management Inc. acquired a new stake in shares of SoFi Technologies in the first quarter worth $334,000. Vestor Capital LLC lifted its stake in shares of SoFi Technologies by 549.3% in the first quarter. Vestor Capital LLC now owns 6,532 shares of the company's stock worth $104,000 after buying an additional 5,526 shares during the last quarter. Finally, BankChampaign National Association acquired a new stake in shares of SoFi Technologies in the first quarter worth $254,000. 38.43% of the stock is currently owned by institutional investors and hedge funds.

SoFi Technologies Company Profile

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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