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.
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%.
