Sign InSOFI sees 5.37% increase, technicals point to bullish momentum, but caution warranted.
Summary
As of June 27, 2023, SoFi Technologies, Inc's stock is traded at $8.64, reflecting a 5.37% increase in one day and exhibiting bullish momentum in the short term, but concerns about previous losses against high revenue and differing predictions among analysts regarding future performance suggest caution and a Hold recommendation.
Overview and Last Close
SoFi Technologies, Inc, under the ticker SOFI, is traded on the NASDAQ exchange. On June 27, 2023, the stock closed at $8.64, indicating a change of 0.44, or a 5.37% increase. This placed the stock within the day's price range of $8.32 to $8.72, a difference of $0.40.
Price Performance and Volatility
The stock price recorded a year high and low of $10.23 and $4.24, respectively, exhibiting significant price volatility throughout the period. Regarding trading volume, the numbers seen on the day were lower than the average volume, with 39.13 million against the 50.10 million average.
Key Statistics and Ratios
SOFI has a Market Cap of $8.13 billion and approximately 940.90 million Shares Outstanding. The company posted an Earnings per Share (EPS) of -0.30, resulting in a negative Price-to-Earnings (PE) ratio of -28.8. These numbers, combined with their current earnings, suggest some financial distress for the company.
Technical Analysis
The Relative Strength Index (RSI14) stands at 62, signifying a higher bought than sold stock, yet not reaching an overbought threshold. The Moving Averages indicate an uptrend with a 50-day moving average of $6.45 and a 200-day moving average of $5.77, signifying a bullish trend in recent times. The MACD (3-month) is also positive at 1.52, confirming the recent bullish momentum.
Discounted Cash flow and Target Price
The Discounted Cash Flow (DCF) value is at $10.22 per share, indicating a potential upside from the last closed price. The consensus target price from analysts stands at $10.12. The target price range among analysts is fairly wide, from a low of $2.5 to a high of $22, suggesting differing predictions for the company's future performance.
Recent News and Predictions
SOFI has been under media spotlight recently due to speculation regarding the resumption of federal student loan payments, which could significantly influence SoFi's performance if it becomes a major player in refinancing these loans. However, internal skepticism around reaching revenue targets in the second half of 2023 might add significant uncertainty. Lastly, concern over previous losses against high revenue might lead to a bearish sentiment among investors.
Prediction for June 28, 2023, and the following week
Given the technical signs of a bullish momentum and the upcoming possibility of being a key player in student loan refinancing, SOFI is set to experience positive days ahead. However, one must keep an eye on the earnings announcement on July 31, 2023, to ensure profitability aligns with current predictions.
Final Evaluation
Based on the above analysis, SOFI is currently categorized as a Hold. While the company shows bullish momentum in the short term and potential upside reflected in the DCF and consensus target, the wide gap in the analyst price target range implies substantial uncertainty. Additionally, substantial previous losses and internal skepticism about meeting revenue targets in the back half of 2023 necessitate caution. Therefore, it would be prudent to wait for more clarity around these factors before making any investment decisions.
