SoFi Technologies (NASDAQ:SOFI) is scheduled to announce its second-quarter results on Monday, July 31, before the market opens. Strong momentum in the company’s personal loans and other financial offerings could have supported performance in the to-be-reported quarter. Also, the rising customer base due to its innovative financial offerings may have continued.
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Ahead of the Q2 earnings release, Stephens analyst Vincent Caintic initiated coverage of SOFI stock with a Hold rating and a $7 price target. The analyst is not concerned about the company’s credit profile but is focused on its significantly higher expense ratio as a key driver to profitability.
Overall, Wall Street expects SoFi to post a loss of $0.07 per share in Q2 compared with a loss of $0.12 in the prior-year period. Furthermore, revenue expectations are pegged at $475.87 million, representing a year-over-year jump of 22.2%.
Technical Indicators Signal a Strong Buy, Ahead of SOFI’s Earnings
Ahead of the Q2 results, technical indicators reveal that SoFi is a Strong Buy. According to TipRanks’ easy-to-understand technical tool, the stock’s 50-Day EMA (exponential moving average) is 8.27, while its price is $9.55, making it a Buy. Further, SOFI’s moving averages convergence divergence (MACD) also signals a bullish trend.
Is SoFi Stock a Buy, According to Analysts?
Wall Street is sidelined on SoFi, with a Hold consensus rating based on seven Buys, eight Holds, and three Sells. The average SOFI stock price target of $8.47 implies about 11.3% downside. Shares have gained over 112% so far in 2023.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are pricing in a 16.23% move after SoFi earnings. The anticipated move is greater than the previous quarter’s earnings-related fall of 12.2%.
