SoFi Technologies Target of Unusually Large Options Trading (NASDAQ:SOFI)

Key Points

• SoFi saw unusually heavy call-option activity on Friday, with 523,615 calls traded—about 36% above its average daily call volume.
• Institutional investors hold 38.43% of SoFi, with Vanguard, BlackRock, State Street, Geode Capital and Morgan Stanley among major holders that recently increased or established positions. Insiders sold 125,219 shares worth about $2.2 million in the last quarter, primarily through pre-arranged trading plans.
• SoFi reported quarterly EPS of $0.12 versus the $0.11 consensus and revenue of $1.21 billion, up 42.5% year over year. Despite the earnings beat, analysts’ consensus rating remains “Hold,” with an average price target of $22.42 compared with the stock’s recent price of $18.91.

SoFi Technologies, Inc. (NASDAQ:SOFI - Get Free Report) saw unusually large options trading on Friday. Stock investors bought 523,615 call options on the stock. This represents an increase of approximately 36% compared to the average daily volume of 384,785 call options.

Insider Activity at SoFi Technologies

In other news, EVP Kelli Keough sold 10,954 shares of the business's stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $17.19, for a total value of $188,299.26. Following the completion of the sale, the executive vice president directly owned 367,728 shares in the company, valued at approximately $6,321,244.32. The trade was a 2.89% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Jeremy Rishel sold 102,123 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $17.78, for a total value of $1,815,746.94. Following the sale, the chief technology officer directly owned 895,089 shares in the company, valued at approximately $15,914,682.42. This represents a 10.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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. In the last quarter, insiders sold 125,219 shares of company stock valued at $2,214,948. Insiders own 2.50% of the company's stock.

Institutional Trading of SoFi Technologies

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in shares of SoFi Technologies by 3.6% in the fourth quarter. Vanguard Group Inc. now owns 111,003,107 shares of the company's stock worth $2,906,061,000 after purchasing an additional 3,900,895 shares in the last quarter. BlackRock Inc. bought a new stake in shares of SoFi Technologies during the second quarter valued at about $1,298,925,000. State Street Corp lifted its holdings in SoFi Technologies by 6.7% in the fourth quarter. State Street Corp now owns 25,937,928 shares of the company's stock worth $679,055,000 after purchasing an additional 1,637,430 shares during the period. Geode Capital Management LLC lifted its holdings in SoFi Technologies by 9.0% in the fourth quarter. Geode Capital Management LLC now owns 23,642,936 shares of the company's stock worth $618,395,000 after purchasing an additional 1,951,248 shares during the period. Finally, Morgan Stanley grew its position in SoFi Technologies by 33.6% in the 4th quarter. Morgan Stanley now owns 13,323,366 shares of the company's stock valued at $348,806,000 after buying an additional 3,350,258 shares in the last quarter. 38.43% of the stock is currently owned by institutional investors and hedge funds.

SoFi Technologies Stock Performance

NASDAQ:SOFI traded up $0.99 during mid-day trading on Friday, hitting $18.91. The stock had a trading volume of 62,045,782 shares, compared to its average volume of 68,812,930. The stock has a market capitalization of $24.42 billion, a price-to-earnings ratio of 39.40 and a beta of 2.17. The company has a 50 day simple moving average of $17.68 and a 200-day simple moving average of $17.64. SoFi Technologies has a 52 week low of $14.88 and a 52 week high of $32.73. The company has a current ratio of 0.74, a quick ratio of 0.10 and a debt-to-equity ratio of 0.30.

SoFi Technologies (NASDAQ:SOFI - Get Free Report) last posted its earnings results on Wednesday, July 29th. The company reported $0.12 EPS for the quarter, topping the consensus estimate of $0.11 by $0.01. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The firm had revenue of $1.21 billion during the quarter, compared to analysts' expectations of $1.11 billion. During the same quarter in the prior year, the firm earned $0.08 EPS. SoFi Technologies's quarterly revenue was up 42.5% on a year-over-year basis. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. On average, research analysts expect that SoFi Technologies will post 0.61 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

SOFI has been the topic of a number of recent research reports. Morgan Stanley reduced their price target on shares of SoFi Technologies from $16.00 to $15.00 and set an "underweight" rating on the stock in a research report on Thursday, July 30th. Citigroup dropped 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 note on Monday, May 4th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $18.00 target price on shares of SoFi Technologies in a report on Thursday, April 30th. UBS Group decreased their target price on SoFi Technologies from $24.50 to $21.00 and set a "neutral" rating for the company in a research note on Thursday, April 30th. Finally, Needham & Company LLC dropped their price target on SoFi Technologies from $25.00 to $24.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Eight equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, SoFi Technologies currently has a consensus rating of "Hold" and a consensus target price of $22.42.

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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