SoFi Technologies (NASDAQ:SOFI) Stock Price Down 4.8% – Should You Sell?

SoFi Technologies, Inc. (NASDAQ:SOFI) shares traded down 4.8% on Friday. The stock traded as low as $16.44 and last traded at $16.76. Approximately 64,044,476 shares traded hands during mid-day trading, an increase of 0% from the average session volume of 63,962,238 shares. The stock had previously closed at $17.61.

SoFi Technologies News Roundup

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

• Positive Sentiment: Strong earnings and raised outlook: SoFi reported its sixth consecutive earnings beat, with third-quarter revenue up 44% year over year to $1.37 billion and EPS of $0.18 versus the $0.17 consensus. Adjusted EBITDA reached a record $470 million, and management issued 2027 guidance above Wall Street expectations, including approximately $6.4 billion in revenue and $0.90 in EPS. SoFi Technologies: 2027 Growth Outlook Looks Underpriced
• Positive Sentiment: Improving profitability and funding economics: Expanding net interest margin, lower-cost deposits and growing fee-based businesses are strengthening SoFi’s earnings model. Analysts highlighted a 6.14% net interest margin, 17% capital ratio and favorable credit trends, including lower net charge-offs. SoFi’s $745 Million Advantage Is Hiding in Deposits
• Positive Sentiment: More bullish analyst views: Keefe, Bruyette & Woods raised its price target, while Wells Fargo forecast significant appreciation. One analyst estimated fair value of $23–$26, implying substantial upside from recent levels. SoFi Price Target Boost
• Positive Sentiment: Expansion beyond traditional lending: SoFi plans to process approximately $25 billion of card volume on stablecoin rails, while its app is adding embedded Prudential life-insurance products. These initiatives could diversify revenue and deepen member engagement. SoFi Stablecoin Card Payments
• Neutral Sentiment: Execution remains the key test: Commentators noted that previous post-earnings rallies faded, making the next several quarters important for proving that the 2027 targets are achievable. SoFi Execution Must Continue
• Negative Sentiment: Valuation and profit-taking pressure: Although forward valuation appears reasonable relative to projected EPS growth, SOFI remains a high-beta stock. Investors may be locking in gains after the earnings rally and questioning whether exceptional growth can continue, contributing to the stock’s decline despite favorable fundamentals.

Analyst Ratings Changes

Several research firms have recently issued reports on SOFI. Piper Sandler initiated coverage on shares of SoFi Technologies in a report on Monday, August 17th. They issued an “overweight” rating and a $22.00 target price for the company. Mizuho cut their price target on shares of SoFi Technologies from $29.00 to $22.00 and set an “outperform” rating on the stock in a report on Friday, July 31st. Monness Crespi & Hardt initiated coverage on shares of SoFi Technologies in a research report on Monday, October 26th. They issued a “buy” rating and a $20.00 price objective on the stock. Wells Fargo & Company reissued a “negative” rating on shares of SoFi Technologies in a research note on Wednesday. Finally, Morgan Stanley decreased their price objective on shares of SoFi Technologies from $16.00 to $15.00 and set an “underweight” rating for the company in a research note on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $21.23.

SoFi Technologies Stock Down 4.8%

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 50-day simple moving average of $16.58 and a 200 day simple moving average of $17.89. The company has a market cap of $21.65 billion, a P/E ratio of 30.47, a P/E/G ratio of 0.95 and a beta of 2.33.

SoFi Technologies (NASDAQ:SOFI) last released its earnings results on Tuesday, October 27th. The company reported $0.18 earnings per share for the quarter, topping the consensus estimate of $0.17 by $0.01. The business had revenue of $1.37 billion during the quarter, compared to the consensus estimate of $1.25 billion. SoFi Technologies had a return on equity of 6.89% and a net margin of 15.60%. The business’s revenue for the quarter was up 44.4% compared to the same quarter last year. During the same period last year, the company earned $0.11 earnings per share. On average, equities analysts anticipate that SoFi Technologies, Inc. will post 0.61 EPS for the current year.

Insider Activity

In related news, EVP Kelli Keough sold 10,203 shares of the business’s stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $14.72, for a total value of $150,188.16. Following the completion of the sale, the executive vice president owned 397,870 shares in the company, valued at approximately $5,856,646.40. The trade was a 2.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 in the company, valued at approximately $15,971,375. This trade represents a 2.00% 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. Over the last three months, insiders sold 50,316 shares of company stock valued at $852,605. 2.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of SOFI. BlackRock Inc. bought a new position in shares of SoFi Technologies in the 2nd quarter worth $1,298,925,000. Bank of America Corp DE purchased a new stake in shares of SoFi Technologies during the 2nd quarter worth $163,808,000. Dimensional Fund Advisors LP lifted its stake in shares of SoFi Technologies by 4.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 9,106,532 shares of the company’s stock worth $144,539,000 after purchasing an additional 359,785 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its position in SoFi Technologies by 2.8% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 5,689,426 shares of the company’s stock valued at $90,348,000 after purchasing an additional 156,218 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in SoFi Technologies during the second quarter valued at about $93,937,000. 38.43% of the stock is currently owned by hedge funds and other 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.