SoFi Technologies (NASDAQ:SOFI) Stock Price Up 13.4% on Better-Than-Expected Earnings

SoFi Technologies, Inc. (NASDAQ:SOFI) shares were up 13.4% during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $16.76 and last traded at $16.40. 160,370,523 shares were traded during mid-day trading, an increase of 151% from the average daily volume of 63,814,254 shares. The stock had previously closed at $14.46.

The company reported $0.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.01. SoFi Technologies had a net margin of 14.78% and a return on equity of 6.22%. The firm had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.25 billion. During the same quarter last year, the business posted $0.11 earnings per share. The company’s quarterly revenue was up 44.4% on a year-over-year basis.

Key SoFi Technologies News

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

• Positive Sentiment: Quarterly results exceeded expectations: SoFi reported adjusted earnings of $0.18 per share versus the $0.17 consensus estimate, while revenue reached approximately $1.37 billion to $1.39 billion, well above the expected $1.25 billion. Revenue increased 44.4% year over year, and net income reached $241 million. SoFi Says It Had an Exceptional Quarter
• Positive Sentiment: Lending and membership growth remained strong: Management highlighted record lending demand, reportedly up 71%, and membership reaching roughly 17 million. The growth supports SoFi’s strategy of expanding customer relationships across multiple financial products. SoFi Stock Jumps as Consumer Lending Boom Accelerates
• Positive Sentiment: Guidance was raised and 2027 growth expectations were introduced: SoFi now expects approximately $5.04 billion of 2026 adjusted revenue and about $0.61 of adjusted EPS. Management also projected roughly 48% adjusted EPS growth in 2027, to approximately $0.90, giving investors greater visibility into future profitability. SoFi Expects 48% Earnings Growth in 2027
• Positive Sentiment: Analyst support improved: Monness Crespi & Hardt initiated coverage with a Buy rating and a $20 price target, implying potential upside from recent trading levels. SoFi Receives a Buy Rating and $20 Target
• Neutral Sentiment: Investors are still assessing whether SoFi can convert rapid customer additions into higher revenue per product and sustain its premium valuation.
• Negative Sentiment: Higher interest rates and credit-related risks remain potential headwinds for the lending business. Truist previously lowered its price target to $16, underscoring ongoing valuation concerns. Truist Cuts SoFi Price Target

Analyst Ratings Changes

Several brokerages have recently commented on SOFI. The Goldman Sachs Group set a $15.00 target price on SoFi Technologies in a research note on Tuesday, October 13th. Benchmark raised SoFi Technologies to a “strong-buy” rating in a research note on Monday, October 12th. Stonex Financia upgraded SoFi Technologies to a “strong-buy” rating in a report on Monday, October 12th. Loop Capital initiated coverage on SoFi Technologies in a research note on Tuesday, September 8th. They issued a “hold” rating and a $22.00 price objective for the company. Finally, Morgan Stanley decreased their price objective on SoFi Technologies from $16.00 to $15.00 and set an “underweight” rating for the company in a report on Thursday, July 30th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, eleven have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $21.95.

Insider Transactions at SoFi Technologies

In other news, CTO Jeremy Rishel sold 18,624 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $17.50, for a total transaction of $325,920.00. Following the completion of the sale, the chief technology officer directly owned 912,650 shares of the company’s stock, valued at $15,971,375. The trade was a 2.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kelli Keough sold 11,286 shares of the company’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 completion of the sale, the executive vice president owned 356,442 shares in the company, valued at $6,415,956. This represents a 3.07% decrease in their position. 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 50,316 shares of company stock valued at $852,605 over the last quarter. Corporate insiders own 2.50% of the company’s stock.

Institutional Trading of SoFi Technologies

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in SoFi Technologies in the 2nd quarter valued at $1,298,925,000. Bank of America Corp DE purchased a new position in SoFi Technologies during the 2nd quarter worth $163,808,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in SoFi Technologies during the 2nd quarter worth $93,937,000. Bank of New York Mellon Corp bought a new stake in shares of SoFi Technologies in the 2nd quarter worth $72,531,000. Finally, Legal & General Group Plc bought a new stake in shares of SoFi Technologies in the 2nd quarter worth $64,706,000. 38.43% of the stock is owned by hedge funds and other institutional investors.

SoFi Technologies Stock Performance

The company’s fifty day moving average price is $16.66 and its 200 day moving average price is $18.10. The company has a market cap of $21.18 billion, a PE ratio of 34.17, a P/E/G ratio of 0.85 and a beta of 2.33. The company has a debt-to-equity ratio of 0.30, a current ratio of 0.74 and a quick ratio of 0.10.

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.