Sign InSoFi Stock Holds Steady Amidst Positive News and Analyst Predictions
Summary
SoFi's stock, with a slight decrease on August 8th, is predicted to remain steady or slightly increase in the next trading day and could trade within the range of $9.5 and $10 for the upcoming week, indicating a promising outlook for investors, although it is recommended to Hold the stock for now due to its current PE ratio and position in relation to the high analyst target.
Stock Performance Overview
SoFi Technologies, Inc. (NASDAQ: SOFI) closed at a price of $9.31 on August 8, 2023, with a slight decrease of $0.08, amounting to a fall of about 0.85%. The share price fluctuated between a low of $9.01 and a high of $9.45 on the trading day. The stock has had quite a run over the past year with prices hitting a high of $11.7 and a low of $4.24.
Volume Analysis
The trading volume of SoFi for August 8 was approximately 27.31 million shares which is lower than the average trading volume of 56.11 million. This relatively lower volume suggests less trading interest for the time being.
Market Capitalization and Outstanding Shares
SoFi's market capitalization stands at about $8.76 billion, indicating the company's size in terms of the market's perception of its worth. There are approximately 940.90 million outstanding shares of SoFi.
Moving Averages, RSI, and MACD
The 50-day moving average of the stock is at $8.67, and the 200-day moving average is at $6.33. Relative Strength Index (RSI) stands at 45; usually, an RSI of 70 and above shows an overbought status, while 30 and below signals an oversold condition. The MACD (Moving Average Convergence Divergence), a trend-following momentum indicator, has a 3-month value of $0.5, which might indicate a positive trend.
EPS, PE Ratio, and DCF
As per the earnings data, SoFi has an EPS (Earnings Per Share) of -$0.31, and a PE (Price to Earnings) ratio stands at -30.03. The Discounted Cash Flow (DCF) is reported to be about $10.89.
Resistance and Support Levels
The next resistance level stands at $9.55. Breaking this level upwards in future sessions may lead to new bull phases. On the downside, the main support is found at $9.16.
Analyst Price Targets
Analysts have a high target of $22, a low target of $2.5 for SoFi, with a median target of $8 and a consensus target of $10.
Company's Recent News
Several positive news about the company might influence its stock performance in the coming days. Recently, SoFi Technologies featured in the list of "5 Best Fintech Stocks to Buy Now". Evidently, the company's lesser-known business segments are exhibiting robust growth, which seems promising for long-term investors. However, despite a strong quarterly beat-and-raise performance last month and a year-to-date yield of over 100%, the SoFi stock has given up about half of last month's gains in August. Nevertheless, robust results indicated record Personal and increased Home loan originations supporting SoFi's growth trajectory.
Predicted Price for Next Trading Session and Upcoming Week
Considering the recent performance, news, fundamental and technical indicators such as moving averages, RSI, and MACD, it is predicted that the stock may remain steady or slightly increase in the next trading day, maintaining the price around $9.35 to $9.5. For the upcoming week, SoFi could trade within the range of $9.5 and $10 barring any major negative news or market downturn.
Evaluation
SoFi's robust growth, improving fundamentals, and favorable news sound promising for the investors. However, considering its current PE ratio and considering it is trading significantly below the high analyst target while above the 50-day and 200-day moving averages, it is recommended to "Hold" the stock for now. It might be worth considering entering a position if it nears stronger support levels. However, as always, investors are suggested to conduct their due diligence and consider their risk tolerance and investment horizon before making any investment decision.
