What's Going On With SoFi Technologies Stock?

SoFi Technologies Inc SOFI shares are in the spotlight Tuesday after the stock rallied more than 20% on Monday. Here’s a look at what’s going on.

What To Know: SoFi reported better-than-expected financial results on Monday sending shares racing higher.

The company reported fourth-quarter adjusted sales of $594.25 million, which beat the consensus estimate of $571.49 million. SoFi reported quarterly adjusted earnings of 2 cents per share, up from a loss of 5 cents per share in the prior year’s quarter.

SoFi highlighted continued growth of more than 40% in both total members and total products. The company also said total deposits grew $2.9 billion in the quarter to $18.6 billion.

“As a result of this growth in high quality deposits, we have benefited from a lower cost of funding for our loans. Our deposit funding also increases our flexibility to capture additional net interest margin (NIM) and optimize returns, a critical advantage in light of notable macroeconomic uncertainty,” said Anthony Noto, CEO of SoFi Technologies.

SoFi expects first-quarter adjusted revenue of $550 to $560 million versus estimates of $573.87 million. The company anticipates $110 million to $120 million of adjusted EBITDA and $10 to $20 million of GAAP net income.

Looking beyond 2024, management said it expects 20% to 25% compound revenue growth through 2026. The company also noted that it sees 20% to 25% earnings per share growth beyond 2026.

A Closer Look At SOFI: 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.

For example, if you're looking to earn an annualized return of 12.68%, you'll need to buy a share of Invesco Senior by the 15th February, 2024. Once done, you can expect to receive a nominal payout of $0.04 on Feb. 29.

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.

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SOFI Price Action: Sofi shares closed Monday up 20.3% at $9.16. The stock was down 2.02% at $8.97 Tuesday morning, according to Benzinga Pro.

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