What's Going On With SoFi Stock Ahead Of Earnings?

SoFi Technologies, Inc. SOFI shares are trading higher Friday, and the stock is up by more than 10% over the past five days. Here's a look at what's going on.

What To Know:

Shares of student loan-related companies fell last week after President Biden announced plans to cancel another $7.4 billion in student debt. To date, the Biden administration has erased approximately $153 billion in student loans, amounting to more than 9% of all outstanding federal student loan debt.

SoFi is set to report its first-quarter financial results before the market open on Monday, April 29 and will host a conference call at 8:00 a.m. ET the same day. According to estimates from Benzinga Pro, analysts expect the company to report earnings of 1 cent per share and quarterly revenue of $555.997 million. 

SoFi has recovered some losses this week, but the stock remains down by more than 20% year-to-date. According to data from Benzinga Pro, SoFi shares are trading above the stock’s 50-day moving average of $7.68 and 17.14% of shares are being sold short. 

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Is SOFI A Good Stock To Buy?

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 Technologies’ 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 Techs 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 9.75%, you'll need to buy a share of Allspring Inc Opps by the May 10. Once done, you can expect to receive a nominal payout of $0.05 on June 3.

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 Techs 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.

SOFI Price Action: According to Benzinga Pro, SoFi Technologies shares are up 3.03% at $7.82 at the time of publication Friday.

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