Deep Dive Into SoFi Techs Stock: Analyst Perspectives (8 Ratings)

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on SoFi Techs SOFI in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments 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 $14.19, with a high estimate of $20.00 and a low estimate of $8.00. This upward trend is apparent, with the current average reflecting a 37.63% increase from the previous average price target of $10.31.

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: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to SoFi Techs. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of SoFi Techs compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of SoFi Techs's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of SoFi Techs's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on SoFi Techs analyst ratings.

Unveiling the Story Behind SoFi Techs

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.

Breaking Down SoFi Techs's Financial Performance

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.

Revenue Growth: SoFi Techs displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 29.15%. This indicates a notable 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 standards, pointing towards difficulties in achieving strong profitability. With a net margin of 8.76%, the company may encounter challenges in effective cost control.

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 is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.18%, the company may encounter challenges in delivering satisfactory returns from its assets.

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.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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