The stock of SoFi Technologies (SOFI) rose another 2% on November 18, putting the share price of the online lender on the cusp of doubling in the last six months.
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SOFI stock has now increased 94% in the past six months, a remarkable run for the company that went public at the end of 2020 amid the Covid-19 pandemic. Through 12 months, the share price has gained a total of 110%.
The current rally in SOFI stock shows no signs of slowing down. The share price has been trending higher since Donald Trump won the U.S. presidential election on November 5 in what’s being called the “Trump Trade.”
Less Regulation and Lower Interest Rates
The stock of SoFi Technologies has been rising on expectations for deregulation in the banking and financial services sector. SoFi, which offers its nearly 10 million customers mortgages, student loans, credit cards, insurance, and online bank accounts is seen as a beneficiary of less regulation.
At the same time, demand for the company’s services is expected to increase as the U.S. Federal Reserve continues to lower interest rates. Since September of this year, the American central bank has reduced interest rates a total of 75-basis points.
Is SOFI Stock a Buy?
The stock of SoFi Technologies has a consensus Hold rating among 14 Wall Street analysts. That rating is based on five Buy, seven Hold, and two Sell recommendations issued in the last three months. The average SOFI price target of $10.13 implies 27.28% downside risk from current levels.
