SoFi Technologies Stock Is Surging Monday: What's Going On?

SoFi Technologies Inc SOFI shares are trading higher Monday after the company announced a $2 billion loan agreement with Fortress Investment Group.

What Happened: SoFi has announced a $2 billion loan platform business agreement for personal loans with funds managed by affiliates of Fortress Investment Group.

The agreement is expected to expand SoFi’s capabilities in its loan platform business. SoFI refers pre-qualified borrowers to loan origination partners and originates loans on behalf of third parties.

“SoFi’s loan platform business is an important part of our strategy to serve the financial needs of more members and diversify toward less capital-intensive and more fee-based sources of revenue,” said Anthony Noto, CEO of SoFi.

See Also: What’s Going On With SoFi Technologies Stock?

Is SOFI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like SoFi‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. SoFi does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on SoFi will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

SOFI Price Action: SoFi shares were up 4.88% at $9.45 at the time of publication, according to Benzinga Pro.

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