Shares of SoFi Technologies, Inc. (NASDAQ:SOFI) increased by 3.6% during trading on Thursday, following an upgrade from Mizuho. The investment firm raised its price target for the stock from $26.00 to $31.00, maintaining an “outperform” rating. The stock reached a high of $28.58 before closing at $28.11. During the day, over 70.9 million shares were traded, reflecting a 16% increase compared to the average daily volume of 61.4 million shares.
Analysts have varying perspectives on SoFi Technologies. TD Cowen initiated coverage on July 11, 2023, with a “hold” rating and a price target of $21.00. JMP Securities reaffirmed a “market perform” rating with a target of $17.00 on July 14. Additionally, Morgan Stanley reiterated an “underweight” rating, raising its target from $11.00 to $13.00 on July 30. Truist Financial also set a price objective of $23.00 in early August.
Currently, the consensus rating for SoFi Technologies is “hold,” with one analyst rating it as a strong buy, six as buy, eleven as hold, and three as sell.
Insider Activity and Institutional Investments
In related news, Kelli Keough, Executive Vice President of SoFi Technologies, sold 10,578 shares on August 20, 2023, at an average price of $22.13, totaling approximately $234,091.14. This transaction reduced Keough’s ownership by 4.31%, leaving her with 234,622 shares valued at around $5.2 million. Insiders collectively own 2.60% of the company’s stock.
Institutional investors have also shown significant activity. Norges Bank acquired a new position valued at $164.1 million during the second quarter. Other notable purchases include Quadrature Capital Ltd with $115.2 million and Nuveen LLC at approximately $47.6 million. Marshall Wace LLP increased its stake by 88.2%, now holding 7.99 million shares valued at $145.6 million. In total, institutional investors own 38.43% of SoFi Technologies.
Financial Performance Highlights
SoFi Technologies reported its quarterly earnings on July 29, 2023, revealing earnings per share (EPS) of $0.08, surpassing the consensus estimate of $0.06 by $0.02. The company’s revenue for the quarter was $519.37 million, though this fell short of analysts’ expectations of $801.94 million. Compared to the same quarter last year, revenue increased by 42.8%. The firm also set its full-year 2025 guidance at an EPS of $0.310. Analysts project that SoFi Technologies will post an EPS of $0.26 for the current fiscal year.
With a market capitalization of $33.66 billion, SoFi Technologies has a price-to-earnings (P/E) ratio of 58.56 and a beta of 1.93. The company’s moving averages stand at $23.65 for the past 50 days and $16.98 over the last 200 days, indicating a volatile trading environment.
SoFi Technologies operates across the United States, Latin America, and Canada, offering various financial services through its Lending, Technology Platform, and Financial Services segments, enabling members to borrow, save, spend, invest, and protect their finances.
