SoFi Technologies Stock Is Sliding: What's Going On?

SoFi Technologies Inc SOFI shares are trading lower Monday morning on the heels of a dowgrade from Wedbush. 

What Happened: Wedbush analyst David Chiaverini downgraded SoFi from Neutral to Underperform and lowered the price target from $5 to $2.50, citing valuation concerns. The analyst is concerned valuation could be impacted by a potential shift in fee income, as well as the potential need to raise additional capital. 

This is the second time Chiaverini has downgraded SoFi in the last two weeks. At the beginning of the month, the Wedbush analyst downgraded SoFi from Outperform to Neutral and lowered the price target from $8 to $5.

According to Benzinga's insider trading activity page, CEO Anthony Noto purchased 30,000 shares last week at an average price of $5.12 per share. Despite the recent insider buying, SoFi shares are hovering close to 52-week lows. SoFi currently has a short interest of 12.42%, according to Benzinga Pro.

See Also: US Stocks Set To Open Week Higher On Some M&A Cheer — But Analyst Sees Debt Crisis Keeping Spurts In Check

SOFI Price Action: SoFi has a 52-week high of $8.52 and a 52-week low of $4.24. 

The stock was down 6.57% at $4.68 at the time of publication, according to Benzinga Pro.

Photo: Thank You from Flickr.