Where SoFi Techs Stands With Analysts

Providing a diverse range of perspectives from bullish to bearish, 6 analysts have published ratings on SoFi Techs SOFI in the last three months.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over 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 $8.75, along with a high estimate of $11.00 and a low estimate of $3.00. This upward trend is apparent, with the current average reflecting a 5.42% increase from the previous average price target of $8.30.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive SoFi Techs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SoFi Techs. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey 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.

Capture valuable insights into SoFi Techs's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on SoFi Techs analyst ratings.

Get to Know SoFi Techs Better

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.

Breaking Down SoFi Techs's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Positive Revenue Trend: Examining SoFi Techs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 24.07% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: SoFi Techs's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.31%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.41%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): SoFi Techs's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.25%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: SoFi Techs's debt-to-equity ratio is below the industry average at 0.52, reflecting a lower dependency on debt financing and a more conservative financial approach.

What Are Analyst Ratings?

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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