SoFi Stock: Death Cross Emerges Confirming Investor Bearishness Over Latest Move

SoFi Technologies Inc SOFI stock has not recovered from the price plummet after its announcement of the $750 million debt offering.

It’s been a while since investors saw SoFi stock do well. After the initial hype died down post 2021, the stock has largely been doing a tango between the $5 to $10 level. While the latter half of 2023 appeared to provide some respite, come 2024 and the stock was down almost 25% already.

Investor bearishness over the stock was recently confirmed by the emergence of a Death Cross signal on the technical price charts for SoFi stock.

The chart above depicts the emergence of the Death Cross on SoFi stock’s price chart. The orange line representing the 50-day simple moving average (SMA) has crossed under the 200-day SMA (blue line), triggering the dreaded technical signal.

Investor concerns for SoFi stock have particularly been revolving around:

• Sofi’s marketing expenses
• Stock volatility
• Implications of the convertible note offering, including dilution and cash flow issues

Also Read: SoFi Stock: Are Redditors Buying The Dip After $750M Debt Offering?

Moreover, big investors also referred to as “whales,” were betting against SoFi stock, according to Benzinga’s tracking of options records. The unusual activity suggested a major move coming. Among 13 notable options, 69% are bearish, with three puts totaling $106,680 and 10 calls at $520,482.

Recent analyst ratings provide no silver lining either:

• On March 6, Wedbush analyst reiterated Underperform with a price target of $3 on SoFi stock.
• On March 11, Piper Sandler analyst reiterated Neutral while reducing the price target from $8.5 to $8 a share.

Read Next: What’s Going On With SoFi Technologies Stock?

Photo: Shutterstock