SoFi Technologies (NASDAQ:SOFI) Trading Down 4.6% – Here’s Why

SoFi Technologies, Inc. (NASDAQ:SOFI) was down 4.6% on Tuesday . The company traded as low as $16.98 and last traded at $17.05. Approximately 41,474,626 shares changed hands during trading, a decline of 39% from the average daily volume of 67,557,211 shares. The stock had previously closed at $17.88.

Key SoFi Technologies News

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

• Positive Sentiment: SoFi announced a partnership with Payward, the parent company of Kraken, to connect SoFi’s banking infrastructure with Kraken’s digital-asset marketplace. Kraken will gain access to SoFi’s banking network and SoFi Exchange Network, while SoFiUSD is expected to be listed on Kraken’s multi-asset platform. The deal could support faster money movement, greater payments activity, and additional stablecoin and banking revenue opportunities. SoFi Opens Banking Rails to Kraken in Sweeping Crypto Alliance
• Positive Sentiment: Scotiabank initiated coverage of SOFI with a Sector Outperform rating and a $25 price target, implying roughly 36% upside from the recently cited share price. The initiation provides a new institutional endorsement of SoFi’s growth prospects. Scotiabank Initiates SoFi Technologies at Sector Outperform
• Positive Sentiment: Bullish commentary highlights record member growth, increasing cross-selling, and a record 1.54 products per member. One analysis projects substantial long-term revenue and earnings growth, supporting a valuation range of $28.50 to $34.20. SoFi Technologies: Shares Are Flat So I’m Accumulating More
• Neutral Sentiment: Several articles argue that SoFi’s share performance has lagged its operating results, including recent quarterly revenue growth and earnings above consensus. The potential valuation gap may attract buyers, but realizing further upside depends on continued growth and improved market sentiment. Price Prediction: SoFi’s Price Target for 2027 May Surprise Investors
• Negative Sentiment: A sharp rise in Treasury yields has pressured balance-sheet lenders such as SoFi by increasing funding and credit concerns. This macroeconomic headwind could limit valuation expansion even as the company continues to grow. SoFi Drops as Yields Hit Balance-Sheet Lenders
• Negative Sentiment: Some retail investors on Stocktwits have identified Robinhood as a more attractive fintech investment than SoFi, signaling competitive concerns and weaker retail enthusiasm. SOFI’s Decline Has Retail Looking Elsewhere

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Needham & Company LLC reduced their price target on SoFi Technologies from $25.00 to $24.00 and set a “buy” rating on the stock in a report on Thursday, July 30th. Mizuho reduced their target price on shares of SoFi Technologies from $29.00 to $22.00 and set an “outperform” rating on the stock in a research note on Friday, July 31st. Morgan Stanley decreased their target price on shares of SoFi Technologies from $16.00 to $15.00 and set an “underweight” rating on the stock in a report on Thursday, July 30th. Piper Sandler assumed coverage on shares of SoFi Technologies in a research note on Monday, August 17th. They issued an “overweight” rating and a $22.00 price target for the company. Finally, Truist Financial raised their price target on shares of SoFi Technologies from $18.00 to $19.00 and gave the stock a “hold” rating in a report on Wednesday, August 12th. Nine analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, SoFi Technologies has an average rating of “Hold” and a consensus target price of $22.55.

SoFi Technologies Price Performance

The company has a debt-to-equity ratio of 0.30, a quick ratio of 0.10 and a current ratio of 0.74. The stock’s 50-day moving average is $17.86 and its two-hundred day moving average is $17.48. The stock has a market cap of $24.14 billion, a PE ratio of 38.94, a PEG ratio of 1.40 and a beta of 2.20.

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

Insider Transactions at SoFi Technologies

In other SoFi Technologies news, CTO Jeremy Rishel sold 102,123 shares of SoFi Technologies 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 directly owned 895,089 shares of the company’s stock, valued at $15,914,682.42. The trade was a 10.24% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 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 business’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $18.00, for a total transaction of $203,148.00. Following the sale, the executive vice president owned 356,442 shares in the company, valued at $6,415,956. This trade represents a 3.07% 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. Insiders have sold a total of 136,505 shares of company stock valued at $2,418,096 over the last 90 days. 2.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On SoFi Technologies

Several large investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of SoFi Technologies during the second quarter worth approximately $1,298,925,000. California State Teachers Retirement System grew its holdings in SoFi Technologies by 1,603.2% during the 2nd quarter. California State Teachers Retirement System now owns 31,201,069 shares of the company’s stock worth $559,435,000 after acquiring an additional 29,369,164 shares in the last quarter. Norges Bank acquired a new position in SoFi Technologies during the 4th quarter worth approximately $321,515,000. Bank of America Corp DE purchased a new stake in shares of SoFi Technologies in the 2nd quarter valued at approximately $163,808,000. Finally, State Street Corp raised its holdings in shares of SoFi Technologies by 30.7% in the 3rd quarter. State Street Corp now owns 24,300,498 shares of the company’s stock valued at $642,019,000 after purchasing an additional 5,708,053 shares in 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.