Shares of SoFi Technologies (SOFI) rose 8.46% on November 11 as a rally in shares of the financial technology company accelerates.
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SOFI stock has now risen for five consecutive trading days, giving it a cumulative gain during that period of nearly 30%. It is the best five-day stretch for the company’s stock in more than a year, according to market data. In the past month, SoFi’s stock has gained 57%, making it a top performer.
The current rally also reverses a slump for SOFI stock that occurred immediately after the company issued its third-quarter financial results. Despite beating Wall Street forecasts on the top and bottom lines and raising its forward guidance, SoFi, which offers student loans and a range of financial services, saw its stock dip immediately after its Q3 print.
Reasons for the Rally
The late October dip in SOFI stock now seems like a distant memory as the share price nears its 52-week high. Reasons for the current rally include a delayed reaction to the strong quarterly financial results, and hopes for less restrictive regulations now that Donald Trump has been re-elected.
SoFi is expected to benefit from U.S. deregulation under a second Trump administration. The company was impacted by the student loan forgiveness program undertaken by U.S. President Joe Biden. So far in 2024, SOFI stock is up 42%.
Is SOFI Stock a Buy?
The stock of SoFi Technologies has a consensus Hold rating among 13 Wall Street analysts. That rating is based on four Buy, six Hold, and three Sell recommendations issued in the last three months. The average SOFI price target of $8.63 implies 38.84% downside risk from current levels.
