Expert Outlook: SoFi Techs Through The Eyes Of 8 Analysts

SoFi Techs SOFI has been analyzed by 8 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have set 12-month price targets for SoFi Techs, revealing an average target of $9.19, a high estimate of $14.00, and a low estimate of $6.50. This current average represents a 17.36% decrease from the previous average price target of $11.12.

Interpreting Analyst Ratings: A Closer Look

A clear picture of SoFi Techs's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SoFi Techs. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SoFi Techs compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of SoFi Techs's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of SoFi Techs's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on SoFi Techs analyst ratings.

Delving into SoFi Techs's Background

SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.

SoFi Techs: Delving into Financials

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: SoFi Techs's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 26.7%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: SoFi Techs's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -51.54%, the company may face hurdles in effective cost management.

Return on Equity (ROE): SoFi Techs's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -5.37%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): SoFi Techs's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.03%, the company may face hurdles in achieving optimal financial returns.

Debt Management: SoFi Techs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.26.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.