Analyst Ratings For SoFi Techs

In the preceding three months, 6 analysts have released ratings for SoFi Techs SOFI, presenting a wide array of perspectives from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $7.83, along with a high estimate of $12.00 and a low estimate of $3.00. Experiencing a 14.14% decline, the current average is now lower than the previous average price target of $9.12.

Investigating Analyst Ratings: An Elaborate Study

The perception of SoFi Techs by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to SoFi Techs. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of SoFi Techs compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for SoFi Techs's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of SoFi Techs's market position. Stay informed and make well-informed decisions with 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.

Unraveling the Financial Story of SoFi Techs

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3 months period, SoFi Techs showcased positive performance, achieving a revenue growth rate of 31.57% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.28%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): SoFi Techs's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 0.73%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): SoFi Techs's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.13%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 1.02, SoFi Techs adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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