TLDR
- SoFi Technologies (NASDAQ: SOFI) reached a record high of $26.38, up 4.7% in trading, breaking its previous 2021 peak
- The stock has surged nearly 70% year-to-date after rebounding over 175% from its April low
- Company reported strong Q2 earnings with $0.08 EPS beating estimates, though revenue of $519.37 million fell short of expectations
- Analysts maintain a “Hold” consensus rating with average price target of $19.35, well below current trading levels
- Heavy retail trading and bullish options activity drove the latest rally, not broader market moves
SoFi Technologies stock reached an all-time high on Monday, climbing 4.7% to $26.38 and surpassing its previous peak from early 2021. The fintech company’s shares closed at $26.21 after trading as high as $26.38 during the session.
The stock has experienced a remarkable turnaround this year. SoFi has gained nearly 70% year-to-date, representing one of the stronger performers in the fintech sector.
Trading volume remained active with 41.2 million shares changing hands. This marked a 32% decline from the average daily volume of 60.6 million shares.
The rally wasn’t connected to broader market movements. Heavy retail trading activity and a surge in bullish options trading helped drive the stock higher.
SoFi’s recovery story is particularly striking when viewed over a longer timeframe. The stock fell almost 40% in April before beginning its current upward trajectory.
Since hitting its April 8 low, shares have rebounded more than 175%. This represents one of the more dramatic comebacks among publicly traded fintech companies.
Strong Earnings Drive Momentum
The company’s recent financial results have provided fuel for the rally. SoFi reported Q2 earnings of $0.08 per share, beating analyst estimates of $0.06 by $0.02.
However, revenue presented a mixed picture. The company posted $519.37 million in quarterly revenue, falling short of analyst expectations of $801.94 million.
Despite the revenue miss, the company showed strong year-over-year growth. Revenue increased 42.8% compared to the same quarter last year when the company earned $0.01 per share.
SoFi’s management provided guidance for fiscal 2025. The company set its full-year EPS guidance at $0.310, while analysts predict $0.26 EPS for the current year.
The company reported record Q2 adjusted net revenue of $858 million, up 44% year-over-year. Management raised full-year revenue guidance to $3.375 billion, implying roughly 30% growth.
Analyst Views Mixed
Wall Street analysts remain cautious despite the stock’s performance. The consensus rating stands at “Hold” with an average price target of $19.35.
This price target sits well below the stock’s current trading levels. The disconnect highlights the gap between analyst expectations and market enthusiasm.
Several firms have recently updated their coverage. Needham & Company raised their price target from $20.00 to $25.00, assigning a “buy” rating on July 30th.
Rothschild & Co Redburn initiated coverage with a “neutral” rating and $20.50 price target on August 1st. Goldman Sachs began coverage with a “neutral” rating and $19.00 target on July 14th.
Keefe, Bruyette & Woods increased their price target from $13.00 to $14.00 but maintained an “underperform” rating on August 5th. TD Cowen started coverage with a “hold” rating and $21.00 target on July 11th.
The analyst community shows mixed sentiment. One analyst rates the stock a “Strong Buy,” six give it a “Buy,” eleven assign a “Hold,” and three rate it a “Sell.”
Insider activity has shown some selling pressure. Director Magdalena Yesil sold 87,140 shares in June for $1.25 million at an average price of $14.39.
EVP Kelli Keough sold 10,578 shares in August for $234,091 at an average price of $22.13. Over the past 90 days, insiders have sold 272,239 shares worth $4.12 million total.
Institutional ownership remains substantial at 38.43% of outstanding shares. Vanguard Group holds the largest position with 100.3 million shares worth $1.83 billion after increasing its stake by 0.8% in Q2.
The stock currently trades with a market cap of $31.16 billion and a P/E ratio of 54.23. The company maintains a debt-to-equity ratio of 0.57 with a current ratio of 0.80.
Policy changes may provide additional tailwinds. Trump’s GOP budget bill could limit federal student lending, potentially directing more borrowers to private lenders like SoFi.
