The stock of SoFi Technologies (SOFI) is up 5% on news of a large personal loan deal.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
The online lender announced that it closed a $525 million personal loan securitization agreement in the fourth quarter of 2024 with funds and accounts managed by PGIM Fixed Income. “The transaction follows a $350 million investment from PGIM in May 2024,” said SoFi in a news release.
The company added that the personal loan deal “builds on the $3.9 billion in personal loan collateral SoFi sold or securitized to-date through the end of Q3 2024, illustrating the value of the company’s leading personal loan business.”
A Positive Development
Analysts at boutique investment bank Keefe, Bruyette & Woods said they viewed the latest personal loan securitization “positively” as it shows “continued demand” for SoFi’s various loan products. SoFi Technologies is a financial technology company known for offering clients mortgages, personal loans, and credit cards.
SOFI stock has been a big winner over the last 12 months, with its share price rising 115%. The company has received multiple rating and price target upgrades from analysts, most of whom see SoFi benefitting from lower interest rates, which should spark demand for its loan products.
Is SOFI Stock a Buy?
The stock of SoFi Technologies has a consensus Hold rating among 15 Wall Street analysts. That rating is based on six Buy, five Hold, and four Sell recommendations issued in the last three months. The average price target on SOFI stock of $13.19 implies 18.93% downside risk from current levels.
