SoFi Technologies (NASDAQ:SOFI) Stock Falls 7.7% – Here’s What Happened

Shares of SoFi Technologies, Inc. (NASDAQ:SOFI) were down 7.7% during trading on Thursday. The stock traded as low as $15.43 and last traded at $16.04. Approximately 77,249,710 shares changed hands during trading, an increase of 21% from the average daily volume of 63,840,098 shares. The stock had previously closed at $17.38.

More SoFi Technologies News

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

• Positive Sentiment: Zacks upgraded SoFi to Rank #2 (Buy), citing improving earnings prospects. Truist also forecast strong potential price appreciation, adding support to the bullish analyst case. Zacks rating upgrade Truist forecast
• Positive Sentiment: SoFi and other fintech shares advanced in the prior session after Block reported stronger-than-expected results and raised its outlook, suggesting sector sentiment can improve when peers deliver. Fintech rally after Block results
• Neutral Sentiment: One analysis says SoFi has consistently beaten revenue targets, but warns its valuation premium could leave the shares vulnerable if growth or investor sentiment disappoints. SoFi revenue and valuation analysis
• Negative Sentiment: The immediate pressure appears sector-wide rather than specific to SoFi: an article attributes fintech losses to falling Bitcoin and political uncertainty in Washington. This could weigh on sentiment toward consumer-facing fintech stocks despite the analyst upgrade. Fintech stocks pressured by crypto and politics

Analyst Ratings Changes

SOFI has been the subject of a number of recent research reports. Wells Fargo & Company reaffirmed a “negative” rating on shares of SoFi Technologies in a research report on Wednesday, October 28th. Scotiabank reiterated a “sector outperform” rating and set a $26.00 price target (up from $25.00) on shares of SoFi Technologies in a research report on Wednesday, October 28th. UBS Group raised their price target on SoFi Technologies from $21.00 to $22.00 and gave the stock a “neutral” rating in a report on Thursday, October 29th. Benchmark restated a “sector outperform” rating on shares of SoFi Technologies in a research report on Wednesday, October 28th. Finally, Stonex Financial upgraded SoFi Technologies to a “strong-buy” rating in a research note on Monday, October 12th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $21.27.

SoFi Technologies Stock Performance

The company has a current ratio of 0.74, a quick ratio of 0.10 and a debt-to-equity ratio of 0.30. The company’s 50-day moving average is $16.47 and its two-hundred day moving average is $17.74. The stock has a market capitalization of $20.72 billion, a P/E ratio of 29.16, a P/E/G ratio of 1.04 and a beta of 2.25.

SoFi Technologies (NASDAQ:SOFI) last posted its earnings results on Tuesday, October 27th. The company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.17 by $0.01. SoFi Technologies had a net margin of 15.60% and a return on equity of 6.89%. The firm had revenue of $1.37 billion during the quarter, compared to analysts’ expectations of $1.25 billion. During the same quarter in the prior year, the firm earned $0.11 EPS. SoFi Technologies’s quarterly revenue was up 44.4% on a year-over-year basis. As a group, sell-side analysts anticipate that SoFi Technologies, Inc. will post 0.61 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CTO Jeremy Rishel sold 18,624 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $17.50, for a total value of $325,920.00. Following the completion of the transaction, the chief technology officer directly owned 912,650 shares of the company’s stock, valued at $15,971,375. This represents a 2.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kelli Keough sold 11,286 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The shares were sold at an average price of $18.00, for a total value of $203,148.00. Following the completion of the sale, the executive vice president owned 356,442 shares in the company, valued at approximately $6,415,956. This represents a 3.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 50,316 shares of company stock valued at $852,605 over the last three months. Corporate insiders own 2.50% of the company’s stock.

Institutional Investors Weigh In On SoFi Technologies

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Compass Financial Management LLC bought a new position in SoFi Technologies in the 2nd quarter valued at about $34,000. Cornerstone Planning Group LLC raised its position in shares of SoFi Technologies by 232.1% during the 1st quarter. Cornerstone Planning Group LLC now owns 2,099 shares of the company’s stock worth $34,000 after buying an additional 1,467 shares in the last quarter. Markowski Investments acquired a new stake in shares of SoFi Technologies in the 2nd quarter worth approximately $38,000. MassMutual Private Wealth & Trust FSB lifted its stake in shares of SoFi Technologies by 44.2% in the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 2,248 shares of the company’s stock worth $35,000 after acquiring an additional 689 shares during the period. Finally, CX Institutional boosted its holdings in shares of SoFi Technologies by 36.2% in the second quarter. CX Institutional now owns 2,477 shares of the company’s stock valued at $44,000 after acquiring an additional 658 shares in the last quarter. 38.43% of the stock is currently owned by institutional investors.

About SoFi Technologies

SoFi Technologies, Inc is a digital financial services company that provides lending, banking, investing and other personal finance products through its online platform and mobile app. The company serves consumers primarily in the United States and aims to provide a centralized alternative to traditional financial institutions.

SoFi’s offerings include personal loans, student loan refinancing, home loans, checking and savings accounts, credit cards, investment products and financial education resources.