What's Going On With SoFi Technologies Stock?

SoFi Technologies, Inc.. SOFI shares are trading higher Monday, and the stock is up nearly 7% over the past five days. Here's a look at what's going on. 

What To Know:

Keefe, Bruyette & Woods analyst Timothy Switzer upgraded SoFi Technologies from Underperform to a Market Perform rating and raised the price target from $6.50 to $7.50 last week. 

"Assuming a stable macro environment, SOFI should now be able to maintain its pace of originations (crucial to supporting revenue given the immediate FV mark benefit) for a full year without needing to raise capital or find a meaningful purchaser of its loans," the analyst wrote.

Switzer also noted improving profitability in the company's Financial Services segment and accelerating revenue in its Technology segment. 

Additionally, Needham analyst Kyle Peterson initiated coverage on SoFi with a Buy rating and a price target of $10 last week. .

According to data from Benzinga Pro, SoFi shares are trading just under the stock’s 50-day moving average of $7.84 and 21.27% of available shares are being sold short. 

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SOFI Stock Prediction 2024

SoFi Techs’ revenue growth in FY23 was 34.63%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.6%, growing 1.6% from last year. The unemployment rate was most recently reported as 3.8%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for SoFi Techs stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against SoFi Techs's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. SoFi Techs operates in the Financials sector. The stock has experienced average annual growth of -24.25% compared to the -5.14% average of its peer companies. This is below the broader sector movement of SoFi Techs.

SOFI Price Action: According to Benzinga Pro, SoFi Technologies shares are up 4.36% at $7.72 at the time of publication Monday.

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