SoFi Technologies (NASDAQ:SOFI) Trading Down 7.9% - Should You Sell?

Key Points

• SoFi Technologies shares fell by 7.9% to $26.19, with trading volume increasing significantly to over 100 million shares.
• Analyst ratings for SoFi are mixed, with one Strong Buy, six Buy, twelve Hold, and three Sell ratings, giving a consensus price target of $20.18.
• Following earnings release, the company reported $519.37 million in revenue, significantly below analyst estimates, but earnings per share exceeded expectations.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) shares dropped 7.9% on Friday . The stock traded as low as $26.13 and last traded at $26.19. Approximately 100,650,716 shares were traded during mid-day trading, an increase of 61% from the average daily volume of 62,350,328 shares. The stock had previously closed at $28.45.

Analyst Upgrades and Downgrades

SOFI has been the subject of several research reports. Cowen initiated coverage on SoFi Technologies in a research report on Friday, July 11th. They issued a "hold" rating for the company. Weiss Ratings restated a "hold (c)" rating on shares of SoFi Technologies in a research note on Wednesday. Needham & Company LLC upped their target price on SoFi Technologies from $25.00 to $29.00 and gave the company a "buy" rating in a research note on Wednesday, September 10th. Morgan Stanley upped their target price on SoFi Technologies from $13.00 to $18.00 and gave the company an "underweight" rating in a research note on Monday, September 29th. Finally, Barclays upped their target price on SoFi Technologies from $18.00 to $21.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $20.18.

SoFi Technologies Stock Down 7.9%

The company has a debt-to-equity ratio of 0.57, a current ratio of 0.80 and a quick ratio of 0.14. The firm has a 50 day simple moving average of $25.49 and a 200-day simple moving average of $18.56. The stock has a market capitalization of $31.36 billion, a price-to-earnings ratio of 54.57, a price-to-earnings-growth ratio of 3.33 and a beta of 1.92.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.02. SoFi Technologies had a return on equity of 4.44% and a net margin of 18.38%.The firm had revenue of $519.37 million during the quarter, compared to analyst estimates of $801.94 million. During the same period in the prior year, the company posted $0.01 earnings per share. The business's revenue for the quarter was up 42.8% compared to the same quarter last year. SoFi Technologies has set its FY 2025 guidance at 0.310-0.310 EPS. On average, sell-side analysts forecast that SoFi Technologies, Inc. will post 0.26 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Jeremy Rishel sold 98,733 shares of the firm's stock in a transaction on Thursday, September 18th. The stock was sold at an average price of $27.50, for a total value of $2,715,157.50. Following the completion of the sale, the chief technology officer directly owned 759,553 shares in the company, valued at approximately $20,887,707.50. This trade represents a 11.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, EVP Kelli Keough sold 10,036 shares of the firm's stock in a transaction on Thursday, September 18th. The shares were sold at an average price of $27.86, for a total value of $279,602.96. Following the completion of the sale, the executive vice president owned 285,410 shares of the company's stock, valued at approximately $7,951,522.60. This trade represents a 3.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 129,614 shares of company stock valued at $3,452,672. 2.60% of the stock is currently owned by corporate insiders.

Institutional Trading of SoFi Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Bartlett & CO. Wealth Management LLC increased its stake in shares of SoFi Technologies by 46.9% in the third quarter. Bartlett & CO. Wealth Management LLC now owns 1,469 shares of the company's stock valued at $39,000 after buying an additional 469 shares in the last quarter. Soltis Investment Advisors LLC boosted its holdings in SoFi Technologies by 1.8% during the second quarter. Soltis Investment Advisors LLC now owns 28,436 shares of the company's stock worth $518,000 after buying an additional 501 shares during the last quarter. AE Wealth Management LLC boosted its holdings in SoFi Technologies by 2.8% during the second quarter. AE Wealth Management LLC now owns 18,620 shares of the company's stock worth $339,000 after buying an additional 514 shares during the last quarter. Pathway Financial Advisers LLC boosted its holdings in SoFi Technologies by 1.1% during the second quarter. Pathway Financial Advisers LLC now owns 47,319 shares of the company's stock worth $862,000 after buying an additional 537 shares during the last quarter. Finally, Burney Co. boosted its holdings in SoFi Technologies by 0.4% during the second quarter. Burney Co. now owns 147,136 shares of the company's stock worth $2,679,000 after buying an additional 557 shares during the last quarter. 38.43% of the stock is currently owned by institutional investors and hedge funds.

SoFi Technologies Company Profile

SoFi Technologies, Inc provides various financial services in the United States, Latin America, and Canada. It operates through three segments: Lending, Technology Platform, and Financial Services. The company offers lending and financial services and products that allows its members to borrow, save, spend, invest, and protect money.

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