Sign InSoFi stock expected to rise with end of student loan moratorium and ESG initiatives.
Summary
SoFi's stock price is predicted to continue its upward trend and move closer to the $9 mark based on technical and fundamental analysis as well as recent developments, and is rated as a Buy for its potential long-term bet in the digital finance sector. (June 21, 2023)
Introduction
SoFi Technologies, Inc. (NASDAQ: SOFI) is a leading fintech company that provides a range of financial services, including student loan refinancing, personal loans, mortgages, and investing services. The company's stock performance has received attention from financial traders and analysts recently.
Technical Analysis
As of the market close on June 21, 2023, SoFi's stock price stood at $8.63, marking a 0.47% increase from the previous day. The stock had a trading volume of 36.21 million shares, lower than the average volume of 49.74 million shares.
The stock exhibited a Relative Strength Index (RSI) of 70, which suggests it is in overbought territory. It traded above its 50-day moving average of $6.25 and also above its 200-day moving average at $5.72, pointing towards an upward trend. The Moving Average Convergence Divergence (MACD) of 1.33 also supports the bulls.
Fundamental Analysis
SoFi has a market capitalization of $8.12 billion with 940.90 million shares outstanding and a negative EPS of $0.27. The company has a PE ratio of -31.96, raising concerns about its value and profitability. The discounted cash flow (DCF) stands at 10.21, suggesting that the stock is undervalued.
The target consensus for the stock is $10.59, with a target high of $22 and a target low of $2.5. The median target is $8, indicating mixed expectations among analysts.
Recent News and Developments
The company has made headlines for various reasons, including news suggesting that SoFi's stock could be due for a healthy pullback after its significant rise this year. Some analysts have raised red flags, sparking debates about the right time to buy SOFI shares.
SoFi also experienced growth during recent banking crises and the US government's moratorium on student loan repayments. The stock price is expected to rise further as the student loan moratorium ends in September 2023, with the company expanding its business and potentially experiencing an increase in refinancing. Additionally, SoFi is incorporating ESG values into its operations, thus promoting environmental stewardship programs and anti-corruption policies.
Stock Price Prediction
Based on the technical and fundamental analysis, and taking into account recent developments, we predict SoFi's stock price on the next trading day, June 22, 2023, will continue its upward trend, moving closer to the $9 mark.
For the upcoming week, we expect the stock price to continue rising, with increased volatility as the debate among analysts and traders continues. The price could reach the $10 level, based on the target consensus and recent developments.
Final Evaluation
Considering the stock's technical indicators, its undervalued status based on DCF, and recent news, we rate SOFI a Buy. The stock presents a possible long-term bet in the rapidly evolving digital finance sector, especially with an expected boost from the end of the student loan moratorium and the company's ESG initiatives. However, investors should closely monitor price movements and developments surrounding the stock, as volatility and mixed signals from analysts may affect its performance.
