Sign InSoFi stock analysis predicts short-term pullback, categorized as Hold
Summary
On June 23, 2023, SoFi's stock closed at $8.28, with technical and fundamental indicators suggesting a short-term pullback in the next trading day due to an overbought RSI, but rebounding in the upcoming week, leading to a final evaluation of a Hold.
Introduction
SoFi Technologies, Inc. (ticker: SOFI) is a leading financial technology company that provides online lending, investment, and money management services. This analysis will provide an in-depth examination of SoFi's stock performance, using technical and fundamental indicators to predict its price in the upcoming trading days and week. In addition, a final evaluation of the stock will be provided, categorizing it as a Sell, Hold, or Buy.
Technical Analysis
SOFI last closed at $8.28 on June 23, 2023, with a decrease of $0.21 (-2.47%). The stock's price ranges from the year's low of $4.24 to a high of $10.23. Its market cap stands at $7.79 billion. The company's trading volume is 62.07 million, compared to an average volume of 49.95 million. The RSI14 is 65, indicating a potential overbought condition. SoFi's 50-day moving average is $6.41 and its 200-day moving average is $5.76. The MACD for the last 3 months is 1.48, suggesting a bullish trend.
Fundamental Analysis
SoFi has an EPS of -$0.3 and a PE ratio of -27.6. The number of outstanding shares is 940.9 million. The company's next earnings announcement is expected on 07/31/2023. Its discounted cash flow (DCF) value is $9.86, and the price targets range from a low of $2.5 to a high of $22, with a consensus target of $10.12 and a median target of $8. Recent news surrounding SoFi reveals that the company has increased its personal loan originations by $6 billion since 2019 and added 2.9 million postpaid phone subscribers in 2022. However, some analysts believe that the recent stock rally is overdone, as the company's high valuation and lack of profitability make it a less attractive investment option.
Upcoming Price Predictions
Based on the technical and fundamental indicators, it is predicted that SoFi's stock price will experience a short-term pullback on the next trading day (June 26, 2023), due to the overbought RSI and possible profit-taking from the recent rally. However, for the upcoming week, the stock's price may rebound, considering its overall bullish trend and consensus price target of $10.12.
Final Evaluation
Taking into account the current technical and fundamental indicators, as well as SoFi's recent news, the stock is categorized as a Hold. Despite the strong business performance and growth, the stock's high valuation, lack of profitability, and recent overbought condition make it relatively less attractive in the short term. Investors should continue monitoring SoFi's progress and assess future price predictions and developments before re-evaluating their position in the stock.
