SoFi Technologies (NASDAQ:SOFI) Shares Down 1.6% – Should You Sell?

SoFi Technologies, Inc. (NASDAQ:SOFI) dropped 1.6% during trading on Friday . The company traded as low as $17.96 and last traded at $18.22. Approximately 28,506,922 shares were traded during mid-day trading, a decline of 57% from the average session volume of 67,031,250 shares. The stock had previously closed at $18.51.

SoFi Technologies News Summary

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

• Positive Sentiment: Payward/Kraken partnership expands SoFi’s digital-asset infrastructure. Payward, the parent of Kraken, will connect to SoFi’s Big Business Banking capabilities and SoFi Exchange Network, use Kraken Prime for crypto liquidity, and gain access to 24/7 U.S.-dollar settlement. The agreement also makes SoFiUSD available on Kraken, potentially increasing stablecoin adoption, transaction activity, and fee opportunities. SoFi integrates Payward into real-time settlement network
• Positive Sentiment: Scotiabank initiated coverage with a Sector Outperform rating and a $25 price target. The target implies meaningful upside from recent trading levels and provides fresh institutional support for SoFi’s growth strategy. Scotiabank initiates coverage
• Positive Sentiment: Analysts and bullish commentary continue to point to record revenue, member growth, improving cross-selling, and a long-term opportunity for SoFiUSD and digital financial services. SoFi price prediction
• Neutral Sentiment: The Kraken deal is strategically significant but its financial impact is uncertain. SoFi must convert expanded stablecoin access, settlement volume, and crypto liquidity into recurring revenue while managing regulatory and digital-asset risks. SoFi-Kraken partnership
• Negative Sentiment: Valuation remains a concern. Despite strong long-term returns and recent operating growth, some analysis suggests SOFI is expensive relative to intrinsic value and may already price in substantial future success. This valuation debate likely contributed to pressure on the shares. SoFi stock valuation analysis

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Weiss Ratings upgraded shares of SoFi Technologies from a “hold (c-)” rating to a “hold (c)” rating in a report on Tuesday, August 11th. Needham & Company LLC decreased their price objective on shares of SoFi Technologies from $25.00 to $24.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Scotiabank started coverage on SoFi Technologies in a research report on Wednesday. They issued a “sector outperform” rating and a $25.00 price objective on the stock. Wells Fargo & Company cut their target price on SoFi Technologies from $18.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 30th. Finally, Truist Financial lifted their target price on SoFi Technologies from $18.00 to $19.00 and gave the stock a “hold” rating in a report on Wednesday, August 12th. Nine investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $22.55.

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 has a market cap of $23.53 billion, a P/E ratio of 37.96, a PEG ratio of 1.50 and a beta of 2.20. The business’s 50 day simple moving average is $17.89 and its 200 day simple moving average is $17.48.

SoFi Technologies (NASDAQ:SOFI) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.12 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.01. The business had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.11 billion. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The company’s revenue was up 42.5% on a year-over-year basis. During the same period in the prior year, the business posted $0.08 earnings per share. SoFi Technologies has set its FY 2026 guidance at 0.600-0.600 EPS. Sell-side analysts predict that SoFi Technologies, Inc. will post 0.61 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CTO Jeremy Rishel sold 102,123 shares of the company’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $17.78, for a total value of $1,815,746.94. Following the completion of the transaction, the chief technology officer owned 895,089 shares of the company’s stock, valued at $15,914,682.42. This represents a 10.24% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Kelli Keough sold 11,286 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $18.00, for a total value of $203,148.00. Following the sale, the executive vice president owned 356,442 shares of the company’s stock, valued at $6,415,956. This represents a 3.07% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 136,505 shares of company stock valued at $2,418,096 in the last quarter. 2.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoFi Technologies

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of SoFi Technologies in the second quarter worth $1,298,925,000. California State Teachers Retirement System lifted its stake in SoFi Technologies by 1,603.2% in the 2nd quarter. California State Teachers Retirement System now owns 31,201,069 shares of the company’s stock worth $559,435,000 after purchasing an additional 29,369,164 shares in the last quarter. State Street Corp lifted its stake in SoFi Technologies by 6.7% in the 4th 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 in the last quarter. Geode Capital Management LLC boosted its holdings in shares of SoFi Technologies by 9.0% during the 4th quarter. Geode Capital Management LLC now owns 23,642,936 shares of the company’s stock valued at $618,395,000 after purchasing an additional 1,951,248 shares during the last quarter. Finally, Morgan Stanley boosted its holdings in shares of SoFi Technologies by 33.6% during the 4th quarter. Morgan Stanley now owns 13,323,366 shares of the company’s stock valued at $348,806,000 after purchasing an additional 3,350,258 shares during the last quarter. 38.43% of the stock is owned by hedge funds and other institutional investors.

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.