SOFI

SoFi Stock (SOFI): Down 30% YTD, Here’s What Investor Sentiment Signals

SoFi (NASDAQ:SOFI) stock is under pressure and has dropped more than 30% year-to-date. Also, individual investors have a Very Negative view of the company, given that in the last 30 days, the number of portfolios (tracked by TipRanks) holding the stock decreased by 3.2%. This suggests these investors are lowering their exposure to SOFI amid industry-wide concerns over credit quality and elevated interest rates. 

Overall, among the 736,442 portfolios monitored by TipRanks, 3.8% have invested in SOFI stock.

Is SoFi Technologies a Buy, Sell, or Hold? 

SoFi continues to deliver strong financial performance and is focused on bolstering its balance sheet. Additionally, its high-quality deposit base contributes to a decrease in its cost of capital.

However, the persistently high interest rate environment has sparked concerns about its loan origination and credit quality, negatively impacting its share price. Furthermore, the issuance of convertible senior notes has raised investor concerns about potential capital dilution, putting further pressure on SoFi stock. According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts bearish on SOFI stock see dilution from the issuance of stocks to raise capital.

Given the near-term concerns, Wall Street remains sidelined on SOFI stock. With five Buys, 10 Holds, and three Sells, SOFI stock has a Hold consensus rating. Analysts’ average price target on SOFI stock is $8.91, implying 28.76% upside potential. 

Bottom Line 

Though SOFI stock has a Very Negative signal from individual investors, Wall Street analysts remain sidelined. Moreover, their price target suggests notable upside potential. These mixed data points indicate that investors should consider multiple factors while investing. Investors can use TipRanks’ Experts Center tools to gain comprehensive insights on SOFI stock and make informed investment decisions.

Disclosure

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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