Is SoFi Technologies Inc. (SOFI) A Good Investment?


SoFi Technologies Inc. (NASDAQ:SOFI) finished Thursday with a subtraction of -$0.33 to close at $5.36, a downside of -5.80 percent. An average of 35,926,000 shares of common stock have been traded in the last five days. There was a fall of -$1.05 in the past week, and it reached a new high 16 times over the past 12 months. The last 20 days have seen an average of 40,859,559 shares traded, while the 50-day average volume stands at 42,087,906.

SOFI stock has decreased by -13.13% in the last month. The company shares reached their 1-month lowest point of $5.36 on 09/22/22. With the stock rallying to its 52-week high on 01/20/22, shares of the company touched a low of $4.82 and a high of $24.65 in 52 weeks. It has reached a new high 2 times so far this year and lost -66.10% or -$10.45 in price. In spite of this, the price is down -78.26% from the 52-week high.

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Insider Transactions

46 days have passed since SoFi Technologies Inc. (SOFI) last reported insider trading activity. SOFTBANK GROUP CORP, who is 10% Owner, most recently acquired $6,683,133 shares at $8.17 per share on Aug 08. In this transaction, the insider spent $54,601,197. 10% Owner, SOFTBANK GROUP CORP, disposed of 5,381,785 shares at a price of $7.99 on Aug 05. The insider now owns more than $43,000,462 worth of shares. Prior to that, Executive Vice President Gill Michelle went on to Sale 50,000 shares at $5.48 each on Jun 14. An amount of $274,000 was transacted.

Valuation Metrics

SoFi Technologies Inc. (SOFI) has a trailing price-to-sales (P/S) ratio at 11.48, the price-to-book (PB) ratio at 0.94.

Financial Health

Further, the company has a long term debt to equity ratio of 0.73 and a total debt to equity ratio of 0.73 for the quarter ending June 29. Its gross profit as reported stood at $252.24 million compared to revenue of $355.02 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, SoFi Technologies Inc.’s return on assets was -3.70%.

Earnings Surprise

For the three-month period that ended June 29, SoFi Technologies Inc. had $3.72 billion in total debt. The analyst consensus anticipated SoFi Technologies Inc.’s latest quarter earnings to come in at -$0.13 per share, but it turned out to be -$0.12, a 7.70% surprise. At the end of the quarter ending June 29, SoFi Technologies Inc.’s stock balance sheet showed total debt was $3.91 billion. Shareholders own equity worth $922.38 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at SoFi Technologies Inc. (SOFI) price momentum. RSI 9-day as of the close on 22 September was 32.24%, suggesting the stock is Neutral, with historical volatility in this time frame at 72.08%.

As of today, SOFI’s price is $5.81 -16.38% or -$1.05 from its 5-day moving average. SOFI is currently trading -16.90% lower than its 20-day SMA and -12.42% lower than its 100-day SMA. However, the stock’s current price level is -9.92% below the SMA50 and -65.90% below the SMA200.

The stochastic %K and %D were 29.32% and 33.02%, respectively, and the average true range (ATR) was 0.37. With the 14-day stochastic at 0.00% and the average true range at 0.38, the RSI (14) stands at 36.89%. The stock has reached -0.34 on the 9-day MACD Oscillator while the 14-day reading was at -0.33.

Analyst Ratings

BofA Securities upgraded SoFi Technologies Inc. (NASDAQ: SOFI) to a a Buy rating in its most recent analyst report. Previously, the stock was rated as a Neutral. The consensus rating for SoFi Technologies Inc. (SOFI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell SOFI, while 5 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 9 others rate it as a “buy”.

What is SOFI’s price target for the next 12 months?

Analysts predict a range of price targets between $7.00 and $11.00, with a median target of $8.00. Taking a look at these predictions, the average price target given by analysts for SoFi Technologies Inc. (SOFI) stock is $8.46.


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