SoFi Technologies Inc SOFI shares are trending this week as the stock has seen increased volatility since the company reported better-than-expected financial results on Monday.
What Happened: SoFi reported fourth-quarter adjusted sales of $594.25 million, which beat the consensus estimate of $571.49 million. The company reported quarterly adjusted earnings of 2 cents per share, up from a loss of 5 cents per share in the prior year's quarter.
SoFi highlighted continued growth of more than 40% in both total members and total products. The company also said total deposits grew $2.9 billion in the quarter to $18.6 billion.
SoFi also said it expects first-quarter adjusted revenue to be in the range of $550 million to $560 million versus estimates of $573.87 million. The company said it anticipates $110 million to $120 million of adjusted EBITDA and $10 million to $20 million of GAAP net income.
Management noted that it expects 20% to 25% compound revenue growth through 2026 and 20% to 25% earnings per share growth beyond 2026.
Sofi shares closed Monday up more than 20% but the stock has been facing selling pressure since. Goldman Sachs maintained SoFi with a Neutral and raised the price target from $7 to $8 on Tuesday. Wednesday morning, Morgan Stanley downgraded SoFi from Equal-Weight to Underweight and lowered the price target from $7 to $6.50.
Is SOFI A Good Stock To Buy?
Wall Street analysts view SoFi on the whole as Neutral, given the history of coverage over the past three months. Dan Dolev from Mizuho is the most bearish, expecting a 20% fall in the stock in the coming year.
Looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. SoFi shares have traded lower in the past three months, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 34.01% over the past year.
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SOFI Price Action: SoFi shares were down 3.04% at $8.14 Wednesday morning, according to Benzinga Pro.
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