What's Going On With SoFi Technologies Stock?

SoFi Technologies Inc SOFI shares are in the spotlight Wednesday after the company priced its convertible senior notes offering. The stock fell more than 15% on Tuesday after the offering was first announced.

What To Know: SoFi shares closed Tuesday down 15.3% at $7.27 after the company announced a proposed convertible senior notes offering. After the market close on Tuesday, SoFi priced its private offering of 1.25% convertible senior notes due 2029 in an aggregate principal amount of $750 million. 

The notes will be sold in a private offering to people reasonably believed to be qualified institutional buyers. The company also plans to grant the initial purchasers a 13-day window to purchase up to an additional $112.5 million of the notes.

SoFi anticipates net proceeds from the offering of approximately $735 million. SoFi said it intends to use approximately $78.8 million of the net proceeds to fund the cost of entering into capped call transactions. The company expects to use the remainder of the proceeds together with cash on hand to pay fees, costs and expenses related to this offering, to redeem its 12.5% Series 1 Preferred Stock and for general corporate purposes, which may include repayment of higher cost indebtedness.

The issuance and sale of the notes is expected to settle on or about March 8.

See Also: Private Employment Grows By 140,000 In February, Misses Forecasts: ‘It Doesn’t Tip The Scales’ For The Fed, Economist Says

Is SOFI A Good Stock To Buy?

Wall Street analysts view SoFi on the whole as a Neutral, given the history of coverage over the past three months. Dan Dolev from Mizuho in SoFi is the most bearish, expecting a 20% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, SoFi fell 6.42%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 34.01% over the past year.

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SOFI Price Action: SoFi shares were bouncing back Wednesday, up 2.06% at $7.42 at the time of publication, according to Benzinga Pro.

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