SoFi Technologies (NASDAQ:SOFI) Trading Down 3.7% - Here's Why

Key Points

• SoFi Technologies shares fell 3.7% on Wednesday, trading as low as $17.76 after closing at $18.55 the prior day. Trading volume also came in above average.
• Despite the pullback, several recent headlines remain bullish on SoFi’s outlook, citing cooler CPI data, improving rate expectations, and the potential for a strong upcoming earnings report with margin expansion and better non-lending revenue.
• The stock has been under pressure this year, down roughly 30% and lagging the market after two disappointing earnings reactions. Analyst sentiment is mixed, with a consensus Hold rating and average price target of $22.78.

Shares of SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) dropped 3.7% during trading on Wednesday . The company traded as low as $17.76 and last traded at $17.87. 71,879,935 shares changed hands during trading, an increase of 4% from the average session volume of 69,001,992 shares. The stock had previously closed at $18.55.

Key SoFi Technologies News

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

• Positive Sentiment: Cooler-than-expected June CPI data lowered rate-hike fears, which could help rate-sensitive names like SoFi by improving the outlook for lending and growth stocks. CPI Comes In Cool: Why It Could Revive These 3 Rate-Sensitive Stocks
• Positive Sentiment: Several analysts and market commentators say SoFi could be building momentum into earnings, with bullish investors looking for a topline beat, further margin expansion, and stronger non-lending revenue trends. SoFi Stock Builds Momentum Ahead of Q2 Earnings. How to Play It Here.
• Positive Sentiment: Some investors are still bullish despite the selloff, arguing SoFi’s long-term growth story remains intact and that the stock could rebound if the next earnings report shows better-than-expected results. Should You Buy SoFi Stock Before July 29?
• Neutral Sentiment: SoFi also announced monthly distributions for its SoFi Enhanced Yield ETF (THTA), which supports its broader product lineup but is unlikely to move the stock on its own. SoFi Announces Monthly Distributions on $THTA (10.00%)
• Negative Sentiment: SoFi shares have been under pressure, with the stock down roughly 30% this year and lagging both the fintech sector and the broader market after two disappointing earnings reactions. Earnings Season Has Been Hard On SoFi Of Late, But It Still Warrants Bullish Interest
• Negative Sentiment: Recent headlines also note the stock’s sharp six-month decline, reinforcing investor concern that SoFi will need a strong earnings report to reverse sentiment. 2 Reasons We’re Fans of SoFi (SOFI)

Analyst Upgrades and Downgrades

SOFI has been the topic of a number of research reports. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $18.00 price target on shares of SoFi Technologies in a research note on Thursday, April 30th. Citigroup cut their price objective on SoFi Technologies from $37.00 to $30.00 and set a "buy" rating for the company in a research note on Monday, May 4th. Truist Financial decreased their target price on SoFi Technologies from $20.00 to $17.00 and set a "hold" rating on the stock in a research report on Tuesday, May 12th. The Goldman Sachs Group raised their target price on SoFi Technologies from $17.00 to $21.00 and gave the company a "neutral" rating in a research report on Thursday, July 9th. Finally, Argus began coverage on SoFi Technologies in a research note on Wednesday, April 15th. They issued a "hold" rating on the stock. Seven analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and three have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, SoFi Technologies currently has an average rating of "Hold" and a consensus target price of $22.78.

SoFi Technologies Stock Down 3.7%

The stock has a market capitalization of $22.92 billion, a price-to-earnings ratio of 40.61 and a beta of 2.14. 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 business's 50-day moving average is $17.01 and its two-hundred day moving average is $19.31.

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, 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 company had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.05 billion. During the same quarter in the prior year, the firm earned $0.06 EPS. SoFi Technologies's quarterly revenue was up 42.6% on a year-over-year basis. SoFi Technologies has set its FY 2026 guidance at 0.600- EPS. Equities analysts anticipate that SoFi Technologies, Inc. will post 0.59 EPS for the current year.

Insider Activity at SoFi Technologies

In other SoFi Technologies news, CTO Jeremy Rishel sold 102,123 shares of the business's stock in a transaction on 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 transaction, the chief technology officer owned 895,089 shares of the company's stock, valued at approximately $15,914,682.42. The trade was a 10.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 the company's stock in a transaction on Monday, June 22nd. The shares were sold at an average price of $17.35, for a total value of $190,051.90. Following the completion of the sale, the executive vice president owned 378,682 shares of the company's stock, valued at approximately $6,570,132.70. The trade was a 2.81% 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. Over the last 90 days, insiders sold 134,044 shares of company stock valued at $2,370,056. 2.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SOFI. Brighton Jones LLC increased its position in SoFi Technologies by 2.0% during the fourth quarter. Brighton Jones LLC now owns 719,288 shares of the company's stock worth $11,077,000 after purchasing an additional 14,281 shares during the last quarter. Caxton Associates LLP acquired a new stake in shares of SoFi Technologies during the 1st quarter worth approximately $129,000. Empowered Funds LLC lifted its holdings in SoFi Technologies by 5.2% in the first quarter. Empowered Funds LLC now owns 33,126 shares of the company's stock valued at $385,000 after acquiring an additional 1,631 shares during the last quarter. Franklin Resources Inc. increased its stake in SoFi Technologies by 23.2% during the second quarter. Franklin Resources Inc. now owns 13,796 shares of the company's stock worth $251,000 after acquiring an additional 2,596 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in SoFi Technologies in the second quarter valued at about $4,633,000. 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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