SoFi Technologies Shares Slip 2% Following Insider Stock Sale

Shares of SoFi Technologies, Inc. (NASDAQ: SOFI) fell by 2% on Tuesday after an insider transaction raised concerns among investors. The stock dipped to a low of $19.82 before closing at $20.73, marking a significant decrease from its previous close of $21.16. During mid-day trading, approximately 33,504,477 shares changed hands, a decline of 37% compared to the average daily volume of 53,387,595 shares.

The decline was triggered by the sale of 10,267 shares by executive vice president Kelli Keough on July 18, 2023. The shares were sold at an average price of $21.80, resulting in a total value of approximately $223,820.60. After this transaction, Keough retained 245,200 shares in the company, valued at around $5,345,360, which represents a 4.02% reduction in her position. This transaction was disclosed in a filing with the Securities and Exchange Commission.

Analysts’ Perspectives on SoFi Technologies

Recent research reports have provided mixed signals regarding SoFi Technologies. On July 11, 2023, TD Cowen initiated coverage with a “hold” rating and a price target of $21.00. Similarly, Goldman Sachs began coverage on July 14, 2023, assigning a “neutral” rating with a price target of $19.00. Conversely, Needham & Company reaffirmed a “buy” rating with a price target of $20.00.

Overall, three analysts have rated the stock with a sell rating, nine have a hold rating, six have issued a buy rating, and one has assigned a strong buy rating. According to data from MarketBeat.com, the consensus rating for the stock is “Hold,” with a consensus target price of $16.78.

Financial Performance and Institutional Interest

SoFi Technologies boasts a market capitalization of $23.83 billion and displays key financial metrics including a price-to-earnings ratio of 52.59 and a debt-to-equity ratio of 0.46. The company last reported earnings on April 29, 2023, achieving an earnings per share (EPS) of $0.06, surpassing analysts’ expectations of $0.03. Revenue for the quarter reached $763.81 million, exceeding the anticipated $739.93 million and reflecting a robust year-over-year growth of 32.7%.

Institutional interest in SoFi Technologies is notable, with hedge funds and other institutional investors collectively holding 38.43% of the company’s stock. For instance, Hazlett Burt & Watson Inc. significantly increased its position by 2,200% in the first quarter, acquiring 2,300 shares valued at $27,000. Other notable purchases include positions taken by Headlands Technologies LLC and SVB Wealth LLC, each valued around $28,000.

SoFi Technologies, Inc. operates across multiple segments, providing a variety of financial services in the United States, Latin America, and Canada. Its offerings enable members to borrow, save, spend, invest, and manage their finances effectively. As the company navigates the market dynamics, investor sentiment and insider activities will continue to play a crucial role in its stock performance.