TLDR
- Jim Cramer from CNBC has reversed his position on SoFi Technologies $SOFI, calling it “too cheap to ignore” after shares dropped over 40% from November highs to around $18.
- The digital finance company reported Q4 earnings of $0.13 per share, beating analyst estimates of $0.12, while revenue hit $1.01 billion—up 39.6% year-over-year.
- Management forecasts $0.60 EPS for FY2026, implying approximately 54% earnings growth, with Cramer noting the stock trades at just 0.6 times its PEG ratio.
- Thoroughbred Financial Services boosted its stake by 212.2% in Q3; institutional investors collectively own 38.43% of total shares.
- Analyst consensus sits at “Hold” with a mean price target of $26.34; Citizens JMP upgraded the stock to “Outperform” with a $30 target.
SoFi Technologies has faced considerable volatility over recent months. The stock collapsed more than 40% from its November high, dropping from $32 to roughly $18. This magnitude of decline inevitably draws scrutiny from market watchers.
Enter Jim Cramer. The well-known CNBC host, who has followed SoFi since it traded at $5, made waves this week by proclaiming the stock “too cheap to ignore” at current levels.
Cramer pointed to the company’s track record first and foremost. SoFi has beaten both revenue and EBITDA expectations in every quarter since going public in 2021—that’s 18 consecutive quarters. The company has also topped earnings estimates for nine quarters running.
This isn’t luck. It reflects disciplined execution.
He also stressed the compelling valuation. At approximately $18, the stock trades at roughly 31 times forward 2026 earnings. Management has guided to $0.60 in EPS for the year, implying around 54% earnings growth.
Do the math, and SoFi sports a PEG ratio of just 0.6. According to Cramer, paying 30 times earnings for a business growing profits north of 50% qualifies as “a legitimate steal.”
Looking further ahead, the math gets even more attractive. Street analysts forecast SoFi trading at approximately 23 times 2027 earnings and under 19 times 2028 estimates. Based on management’s published targets, that 2028 multiple shrinks to about 17 times.
What the Numbers Show
Recent quarterly results back up the bullish thesis. SoFi posted $0.13 in EPS for Q4, topping the $0.12 consensus estimate. Revenue came in at $1.01 billion, beating expectations of $984.75 million and marking a 39.6% jump from the prior year.
For context, the company earned just $0.05 per share in the same quarter of 2024. That’s meaningful year-over-year improvement.
Return on equity stood at 5.88%, with a net margin of 13.34%. The balance sheet remains healthy with a debt-to-equity ratio of just 0.17.
SOFI opened Friday’s session at $19.10. The stock has traded between $8.60 and $32.73 over the past 52 weeks. Current pricing sits below both the 50-day moving average of $23.99 and the 200-day moving average of $26.05.
Analyst and Investor Activity
Not everyone on Wall Street shares Cramer’s enthusiasm. The current analyst consensus reads “Hold,” with a mean price target of $26.34. Seven analysts rate it Buy, eight say Hold, and three recommend Sell.
Citizens JMP upgraded SOFI to “Outperform” with a $30 price target on February 9th. Bank of America holds an “Underperform” rating with a $20.50 target. Goldman Sachs trimmed its target from $27 to $24 while keeping a “Neutral” rating.
On the institutional front, Thoroughbred Financial Services expanded its position by 212.2% during Q3, bringing its stake to 40,140 shares worth about $1.06 million. Several other institutional players added to their positions in the same period.
Insider activity has been mixed. EVP Eric Schuppenhauer purchased 5,000 shares at $19.93 on February 5th. CTO Jeremy Rishel sold 91,837 shares in December at $26.64. Over the past 90 days, insiders have sold a combined 214,753 shares valued at approximately $5 million.
Company insiders own 2.60% of total shares. Institutional ownership accounts for 38.43%.
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