What 5 Analyst Ratings Have To Say About SoFi Techs

SoFi Techs SOFI has been analyzed by 5 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $11.9, a high estimate of $16.00, and a low estimate of $8.50. This upward trend is evident, with the current average reflecting a 15.53% increase from the previous average price target of $10.30.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive SoFi Techs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SoFi Techs. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of SoFi Techs compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of SoFi Techs's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of SoFi Techs's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on SoFi Techs analyst ratings.

Delving into SoFi Techs's Background

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.

Financial Insights: SoFi Techs

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: SoFi Techs's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 29.15%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: SoFi Techs's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 8.76%, the company may face hurdles in effective cost management.

Return on Equity (ROE): SoFi Techs's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 1.01%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): SoFi Techs's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.18%, the company may face hurdles in achieving optimal financial performance.

Debt Management: SoFi Techs's debt-to-equity ratio is below the industry average at 0.54, reflecting a lower dependency on debt financing and a more conservative financial approach.

How Are Analyst Ratings Determined?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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