TLDR
- SoFi stock hit record high of $26.38, up 4.7%, breaking previous 2021 peak
- Stock surged 70% year-to-date after rebounding 175% from April lows
- Q2 earnings beat at $0.08 vs $0.06 estimate, but revenue missed expectations
- Analysts hold “Hold” rating with $19.35 average target, below current price
- Heavy retail trading and options activity fueled latest gains
SoFi Technologies stock reached an all-time high Monday, climbing 4.7% to $26.38 and surpassing its previous 2021 peak. The fintech company closed at $26.21 after heavy trading volume of 41.2 million shares.
The stock has delivered a remarkable 70% gain year-to-date, making it one of the top performers in fintech. This represents a dramatic turnaround after falling nearly 40% in April.
Since hitting its April 8 low, SoFi shares have rebounded over 175%. The rally wasn’t tied to broader market moves but driven by retail enthusiasm and bullish options activity.
Strong Earnings Beat Expectations
SoFi reported Q2 earnings of $0.08 per share, beating analyst estimates of $0.06. The company showed strong year-over-year growth with revenue climbing 42.8% compared to last year’s quarter.
However, revenue of $519.37 million fell short of analyst expectations of $801.94 million. The company also reported record Q2 adjusted net revenue of $858 million, up 44% year-over-year.
Management raised full-year revenue guidance to $3.375 billion, implying roughly 30% growth. SoFi set fiscal 2025 EPS guidance at $0.310, while analysts predict $0.26 for the current year.
The company posted an 18.38% net margin and 4.44% return on equity. These metrics show improving profitability as SoFi scales its operations.
Analyst Sentiment Remains Cautious
Wall Street analysts maintain a “Hold” consensus rating despite the stock’s strong performance. The average price target sits at $19.35, well below current trading levels.
Needham & Company raised their target from $20.00 to $25.00 with a “buy” rating. Goldman Sachs initiated coverage with a “neutral” rating and $19.00 target.
The analyst community shows mixed views with one “Strong Buy,” six “Buy,” eleven “Hold,” and three “Sell” ratings. This disconnect highlights the gap between analyst expectations and market enthusiasm.
Institutional ownership stands at 38.43% of shares. Vanguard Group holds the largest position with 100.3 million shares worth $1.83 billion.
Insider selling has occurred recently, with executives disposing of shares worth $4.12 million over 90 days. The stock trades with a market cap of $31.16 billion and P/E ratio of 54.23.
Policy changes may provide tailwinds, as potential limits on federal student lending could benefit private lenders like SoFi. The company’s return to crypto trading has also lifted investor sentiment.
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