Decoding 4 Analyst Evaluations For SoFi Techs

In the preceding three months, 4 analysts have released ratings for SoFi Techs SOFI, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $8.75, with a high estimate of $10.00 and a low estimate of $7.00. This current average has decreased by 6.72% from the previous average price target of $9.38.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of SoFi Techs by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to SoFi Techs. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of SoFi Techs compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of SoFi Techs's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into SoFi Techs's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on SoFi Techs analyst ratings.

Get to Know SoFi Techs Better

SoFi is a financial-services company that was founded in 2011 and is based in San Francisco. Initially known for its student loan refinancing business, the company has expanded its product offerings to include personal loans, credit cards, mortgages, investment accounts, banking services, and financial planning. The company intends to be a one-stop shop for its clients' finances and operates solely through its mobile app and website. Through its acquisition of Galileo in 2020, the company also offers payment and account services for debit cards and digital banking.

Key Indicators: SoFi Techs's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining SoFi Techs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 24.07% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: SoFi Techs's net margin excels beyond industry benchmarks, reaching 13.31%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): SoFi Techs's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.41%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): SoFi Techs's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.25%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.52.

How Are Analyst Ratings Determined?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.