TLDR
- CNBC’s Jim Cramer has changed his stance on SoFi $SOFI, declaring it “too cheap to ignore” following a steep decline of over 40% from November peaks to approximately $18.
- The fintech company surpassed Q4 projections with earnings per share of $0.13 against the $0.12 forecast, while revenue reached $1.01 billion, representing a 39.6% annual increase.
- Company leadership projects $0.60 in earnings per share for FY2026, suggesting approximately 54% profit expansion, with Cramer highlighting a PEG ratio of merely 0.6.
- Thoroughbred Financial Services expanded its position by 212.2% during Q3; institutional ownership now represents 38.43% of outstanding shares.
- Wall Street consensus remains at “Hold” with an average price objective of $26.34; Citizens JMP recently elevated its rating to “Outperform” with a $30 valuation.
The past several months have been challenging for SoFi Technologies. The shares plummeted over 40% from their mid-November peak, sliding from $32 down to approximately $18. This magnitude of decline naturally attracts attention from market observers.
Among those observers is Jim Cramer. The prominent CNBC personality, who has tracked SoFi since its $5 trading days, generated buzz this week by declaring the stock “too cheap to ignore” at present valuations.
Cramer emphasized the company’s execution history as a starting point. Since its 2021 public debut, SoFi has exceeded both revenue and EBITDA projections in all 18 consecutive quarters. Additionally, it has surpassed earnings forecasts for nine straight quarters.
This isn’t coincidence. It’s consistency.
He also highlighted the valuation opportunity. Trading around $18, the shares command approximately 31 times projected 2026 earnings. With management forecasting $0.60 in EPS for the year, that translates to roughly 54% earnings expansion.
This calculation yields SoFi a PEG ratio of merely 0.6. According to Cramer, paying 30 times earnings for a company delivering 50%-plus growth represents “a legitimate steal.”
Extending the timeline reveals even more compelling metrics. Wall Street projections have SoFi trading at approximately 23 times 2027 forecasts and below 19 times 2028 estimates. Using management’s own projections, that 2028 multiple compresses to near 17 times.
What the Numbers Show
The latest quarterly performance supports the optimistic thesis. SoFi delivered $0.13 in EPS for Q4, exceeding the $0.12 Street estimate by a penny. Revenue totaled $1.01 billion, surpassing the $984.75 million projection and marking a 39.6% year-over-year increase.
In the comparable 2024 quarter, the company recorded $0.05 EPS. The annual progression is significant.
Return on equity registered at 5.88%, accompanied by a net margin of 13.34%. The firm’s debt-to-equity ratio stands at a modest 0.17.
SOFI began Friday’s session at $19.10. Its 52-week trading band spans from $8.60 to $32.73. Current pricing sits beneath both the 50-day moving average of $23.99 and the 200-day moving average of $26.05.
Analyst and Investor Activity
Wall Street sentiment varies. The prevailing analyst rating is “Hold,” with an average price objective of $26.34. Seven analysts assign it a Buy rating, eight recommend Hold, and three rate it a Sell.
Citizens JMP elevated SOFI to “Outperform” with a $30 price target on February 9th. Bank of America maintains an “Underperform” stance with a $20.50 target. Goldman Sachs reduced its objective from $27 to $24 while maintaining a “Neutral” rating.
Regarding institutional movement, Thoroughbred Financial Services increased its holdings by 212.2% in Q3, elevating its position to 40,140 shares valued at approximately $1.06 million. Multiple other institutional investors similarly expanded positions during this timeframe.
Insider transactions presented a mixed picture. EVP Eric Schuppenhauer acquired 5,000 shares at $19.93 on February 5th. CTO Jeremy Rishel divested 91,837 shares in December at $26.64. During the trailing 90-day period, insiders collectively sold 214,753 shares worth roughly $5 million.
Insider ownership stands at 2.60% of the company. Institutional holders control 38.43%.
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