TLDR
- CNBC’s Jim Cramer changed his stance on SoFi $SOFI, declaring it “too cheap to ignore” following a steep 40%+ decline from November peaks to approximately $18.
- The company exceeded Q4 expectations with earnings per share of $0.13 versus analyst estimates of $0.12, while revenue reached $1.01 billion—a 39.6% increase compared to last year.
- Company leadership projects $0.60 EPS for FY2026, suggesting roughly 54% profit expansion, with Cramer highlighting a PEG ratio of approximately 0.6.
- Thoroughbred Financial Services expanded its position by 212.2% during Q3; institutional ownership currently stands at 38.43%.
- Wall Street maintains a “Hold” rating with an average price target of $26.34; Citizens JMP recently raised its rating to “Outperform” with a $30 price objective.
The past several months haven’t been kind to SoFi Technologies shareholders. Since mid-November, the fintech company’s shares have plummeted more than 40%, sliding from $32 down to approximately $18. Such dramatic declines inevitably spark conversation.
Enter Jim Cramer. The “Mad Money” host, who’s been tracking SoFi since its $5 days, grabbed attention this week by declaring the shares “too cheap to ignore” at their current valuation.
Cramer emphasized the company’s execution history. Since its 2021 public debut, SoFi has surpassed both revenue and EBITDA projections in all 18 quarters. Additionally, it’s exceeded earnings forecasts for nine consecutive quarters.
This isn’t coincidence. It’s consistency.
The valuation angle caught his attention too. Trading around $18, the shares fetch approximately 31 times projected 2026 earnings. With management targeting $0.60 EPS this fiscal year, that represents earnings expansion of roughly 54%.
These figures yield SoFi a PEG ratio of merely 0.6. According to Cramer, acquiring a company growing earnings by 50%-plus for 30 times earnings represents “a legitimate steal.”
The forward projections become even more compelling. Analyst estimates place SoFi at approximately 23 times 2027 earnings and below 19 times 2028 projections. Using management’s own forecasts, that 2028 multiple compresses to around 17 times.
What the Numbers Show
Recent quarterly performance supports the optimistic perspective. SoFi delivered $0.13 EPS for Q4, edging past the $0.12 analyst consensus. Revenue totaled $1.01 billion, surpassing the $984.75 million forecast and representing 39.6% growth versus the prior-year period.
For comparison, the company generated $0.05 EPS during Q4 2024. The year-over-year advancement speaks volumes.
Return on equity registered at 5.88%, accompanied by a net margin of 13.34%. The company maintains a conservative debt-to-equity ratio of 0.17.
SOFI began Friday trading at $19.10. Its 52-week range extends from $8.60 to $32.73. Current pricing sits beneath both the 50-day moving average of $23.99 and the 200-day moving average of $26.05.
Analyst and Investor Activity
Wall Street sentiment remains divided. The prevailing analyst consensus stands at “Hold,” with an average price target of $26.34. Seven analysts recommend buying, eight suggest holding, and three advise selling.
Citizens JMP elevated SOFI to “Outperform” on February 9th, establishing a $30 price target. Bank of America maintains an “Underperform” stance with a $20.50 objective. Goldman Sachs reduced its target from $27 to $24 while maintaining a “Neutral” rating.
Regarding institutional movements, Thoroughbred Financial Services increased its holdings by 212.2% during Q3, expanding its position to 40,140 shares worth approximately $1.06 million. Multiple other institutional investors similarly expanded their stakes throughout the quarter.
Insider transactions presented a mixed picture. EVP Eric Schuppenhauer acquired 5,000 shares at $19.93 on February 5th. CTO Jeremy Rishel divested 91,837 shares in December at $26.64. Throughout the past 90 days, insiders collectively sold 214,753 shares valued at roughly $5 million.
Company insiders control 2.60% of outstanding shares. Institutional investors hold 38.43%.
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