Latest news with #SOFI
Business Insider
2 days ago
- Business
- Business Insider
SoFi and Paychex Team Up for Employee Financial Wellness
SoFi (SOFI) and Paychex (PAYX) have announced a partnership to integrate SoFi's financial wellness tools into the Paychex Flex Perks platform. The deal gives employees of small and mid-size companies access to personal finance resources, such as student loan refinancing, personal loans, and financial planning, directly through their payroll portal. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. With SoFi now part of Paychex Flex Perks, employees can choose extra financial benefits through Paychex's online platform and pay for them through payroll deductions at no added cost to their employer. It must be noted that since its launch in 2024, Paychex Flex Perks has already seen over 230,000 employees purchase at least one benefit. The addition of SoFi's services is expected to boost engagement even further, especially as federal student loan payments resume. For SoFi, the partnership expands SoFi's reach to millions of employees across 740,000+ small and mid-sized businesses. Further, Paychex Flex Perks' wide customer base will allow SoFi to benefit from increased loan volume, refinancing activity, and use of its financial planning services. Analyst Ups SoFi's Price Target Truist Financial analyst Matthew Coad has raised his price target for SoFi stock to $20 from $14, while maintaining a Hold rating. The analyst said the overall outlook for the FinTech sector looks solid. He also noted that stablecoins have become a hot topic among FinTech and payments investors recently. Thus, Coad expects that the company's upcoming Q2 earnings call may include discussions on how crypto and stablecoins might affect the industry. Is SOFI Stock a Good Buy? Turning to Wall Street, SOFI stock has a Moderate Buy consensus rating based on six Buys, eight Holds, and three Sells assigned in the last three months. At $16.58, the average SOFI stock price target implies a 24.94% downside potential.
Yahoo
5 days ago
- Business
- Yahoo
Fed Steps Back, Private Lenders Step Up
President Trump's new reconciliation law is shaking up student lending. It slashes the federal government's role in a market that's worth around $1.7 trillion and nudges more borrowers toward private loans. It all kicks in July 1, 2026, so students and parents have just under a year to plan. Warning! GuruFocus has detected 7 Warning Sign with SOFI. Graduate students will now be capped at borrowing $100,000 for master's programs and $200,000 for professional degrees like law or medicine. Parents using the PLUS loan program can borrow only $20,000 per year and up to $65,000 per child. The Graduate PLUS option vanishes entirely. It's a big shift from today's borrow the full cost of attendance rules. Lenders such as SoFi Technologies (NASDAQ:SOFI) are already sharpening their pencils. CEO Anthony Noto says that if the government steps back, private lenders will happily fill the gapand they typically charge higher rates and want strong cosigners. SoFi's stock has climbed about fourteen percent in the past week and nearly forty percent year to date as investors spot this opportunity. For students without pristine credit or a willing cosigner, this could mean paying more over time or facing tougher approval hurdles. Colleges might also feel a squeeze to keep tuition growth in check, knowing their students have fewer federal loan options. Taxpayers, meanwhile, get some relief from the risks of ever-rising federal loan balances. Keep an eye on SoFi, Sallie Mae (NASDAQ:SLM) and Nelnet (NASDAQ:SLM) as they gear up for a surge in private loan originations. Regulators may step in if the cost to students jumps too sharply, so this story is just getting started. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
13-07-2025
- Business
- Yahoo
CoreWeave Rules the Unusual Options Activity. But Should It Be in Your Portfolio?
Friday looks to be a volatile day in the markets after Donald Trump rattled his tariff saber on Thursday. The president threatened Canada with 35% tariffs on imports into the U.S. and blanket tariffs of 15%-20% on those countries that have yet to receive a letter from the White House with a specified rate. Creating a 38% 'Dividend' on SOFI Stock Using Options Wednesday's Unusual Options Activity Reveals 3 Standout Long Straddle Plays Teva Pharmaceutical (TEVA) Just Flashed a Statistically Viable Signal for Bullish Traders Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! It continues to amaze me how little regard investors are paying to tariffs at the moment. It's as if the early April swan dive — from April 2's close to the April 8th close (4 trading days), the S&P 500 lost 12% — was decades ago. I'm not a technical analyst, so I'm not going to spend any more time questioning the sanity of investors. Still, I have to say, the mere fact that CoreWeave (CRWV) had 10 of the top 20 unusually active options--defined as Volume-to-Open-Interest ratios of 1.24 or higher and expiring in seven days or longer--speaks volumes about where investors' heads are at. The AI-focused company may be ideally situated for the boom in artificial intelligence, so I get the heightened options volume--711,765 on Thursday, about 75% higher than the 30-day average--I'm not sure the average retail investor should be buying CRWV for the long haul. Have an excellent weekend. As the S&P 500 P/E multiple moves higher in 2025, it gets closer to hitting a 10-year high. Right now, it's around 30x, the same level as March 2021, down from the 10-year high of 38.20x in December 2020. Source: While I understand that investors are willing to pay more for AI-related businesses, it seems that they're eager to do so for almost every company in every industry. How long can this carry on? That is the million-dollar question. At present, CoreWeave loses an exceptional amount of money, so I'll focus on its EV/TTM revenue multiple instead. It's currently 28.9x, up from 14.7x when it went public at $40 in March. It's up 246% in the three months since its IPO. CoreWeave generates over 70% of its revenue from Microsoft (MSFT). The tech giant's enterprise value of $3.75 trillion is 13.9x its trailing 12-month revenue. Back in March, it was 10.8x, much cheaper than CoreWeave. Which begs the question? Why not buy MSFT stock for the long term, significantly reducing your risk exposure, while likely delivering above-average returns over the long haul? In Microsoft's Q3 2025 quarter, its operating income was $32.o billion. CoreWeave's operating loss was $ 27.0 million, according to S&P Global Market Intelligence. In 2024, CoreWeave's net loss was $937.8 million, up from $593.7 million a year earlier. Its adjusted net loss was a more palatable $64.9 million, with an adjusted operating profit of $355.8 million, up substantially from $703,000 in 2023. You could make the case that the adjusted numbers show that it can make money on a non-GAAP basis, which suggests its P/E multiple isn't as outrageous as it might seem. However, the net debt should be something to watch closely. At the end of December, it was $10.62 billion, or 16% of its $67.49 billion market cap. That would be a reasonable percentage for a typical industrial business, but for a tech company? Microsoft's net debt of $25.4 billion is 0.7% of its $3.73 trillion market cap. Again, why not invest in MSFT stock and call it a day? One more thing. In the 12 months ended March 31, the company's interest expense was $584.0 million. That's $4.64 of sales for every $1 in interest. At the end of December, it was $5.31 in sales for every $1 in interest. I doubt that's sustainable. I guess we'll find out soon enough. When you examine the company's financials, it's easy to see why options are popular for CoreWeave stock. It's a lower-risk way to play the fast-growing business without losing your shirt. As mentioned, there were 10 unusually active options in the top 20 yesterday (see below). Not surprisingly, they're all calls. CoreWeave's P/C (Put/Call) volume ratio yesterday was 0.26, which means there were 3.85 calls for every put. That's very bullish. Meanwhile, the P/C OI ratio was 1.46, which means there are 1.46 puts open for every call, a bearish long-term indicator. Now, there are plenty of esoteric options strategies you could play here, but I'm going to assume you're relatively risk-neutral and do like the long-term potential of its stock. With that being the case, I'd probably go with the Jan. 16/2026 $100 call with an ask price of $40.15, or 29% of its share price. With a DTE (days to expiration) of 191, it gives you a decent amount of time for the shares to appreciate further. About 28% ITM (in the money) and a breakeven of $140.15, if you believe it will move higher over the next 191 days, your profit probability is high. If you're a little more adventurous, you could sell a Jan. 16/2026 $100 put for an annual return of $43.9%. Of course, if the share price falls below $100, you could be asked to buy the shares at expiration at $100, above where the shares trade for a paper loss. CoreWeave is a stock that I would neither own nor use options for, but that doesn't mean you shouldn't. On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
12-07-2025
- Business
- Yahoo
SoFi Shares See Huge Bullish Signal, Could Rise More
SOFI is a financial services platform offering loans, credit cards, refinancing, and other financial services. Its first-quarter fiscal 2025 earnings report showed record revenue of $771 million (a 33% year-over-year increase), net income of $71 million, per-share earnings of $0.06, and increased full-year and net revenue guidance. No wonder SOFI shares are up 36% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock. Institutional volumes reveal plenty. In the last year, SOFI has enjoyed strong investor demand, which we believe to be institutional support. Each green bar signals unusually large volumes in SOFI shares. They reflect our proprietary inflow signal, pushing the stock higher: Plenty of financials names are under accumulation right now. But there's a powerful fundamental story happening with SoFi. Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, SOFI has had strong sales and earnings growth: 3-year sales growth rate (+52.2%) 3-year EPS growth rate (+34.8%) Source: FactSet Also, EPS is estimated to ramp higher this year by +91%. Now it makes sense why the stock has been generating Big Money interest. SOFI is producing strong financial performance. Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term. SoFi just became a top-rated stock at MoneyFlows. That's when the stock saw unusual buy pressure with its growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis. SOFI just received its first Outlier inflow signal, which is hugely bullish. The blue bar below shows when SOFI was a top pick…this could be the beginning of a Big Money boom: Tracking unusual volumes reveals the power of money flows. This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward. The SOFI action isn't new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio. Disclosure: the author holds no position in SOFI at the time of publication. If you are a Registered Investment Advisor (RIA) or a serious investor, learn how institutional trading flows can take your investing to the next level. This article was originally posted on FX Empire Outliers Like Intuit Can Be Found Early Can Anything Stop Nvidia? The First $4 Trillion Company Why Nextracker Could Be the Next Big Money Outlier NASDAQ 100 Update: Is a 5% Correction Brewing? The EUR/USD Paradox: A Strong Euro in a Weak Economy Meta Shares: What's Next After Record Performance? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
12-07-2025
- Business
- Business Insider
Top Needham Analyst Assigns SOFI Stock a Hold Rating, Says ‘Fully Valued' Ahead of Q2 Earnings
Top Needham analyst Moshe Orenbuch initiated coverage of SoFi Technologies (SOFI) stock with a Hold rating and a price target of $21. While the 5-star analyst highlighted many positives of the fintech company and digital bank, he is sidelined on the stock as he believes that it is fully valued at the current levels. SoFi Technologies is scheduled to announce its earnings for the second quarter of 2025 on July 29. Expectations are high, given the company's solid Q1 performance, driven by strength in its Financial Services business and a rapidly expanding member base. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Wall Street expects SoFi to report EPS (earnings per share) of $0.06, reflecting a significant increase from $0.01 in the prior-year quarter. Furthermore, revenue is expected to grow by 34% to around $802 million. SOFI stock has rallied about 46% in the past month and has risen by an impressive 219% over the past year, thanks to its robust growth and solid execution amid challenging macro conditions. Top Analyst Is Cautious on SOFI Stock Despite Multiple Strengths Orenbuch stated that SoFi is a leading neobank that started its journey as a student loan refinance originator and has significantly increased the breadth and depth of its product offerings. He noted that the company offers a wide array of best-in-class products, including Money and Invest. These products and solutions are integrated into one platform, which enables the leveraging of customer acquisition costs. Further, Orenbuch noted that the 2022 acquisition of a bank by SoFi Technologies allowed it to build its customer franchise with consumer deposits and further bolstered its position while increasing customer retention. He also noted the strategic acquisition of Galileo in 2020 and Technisys in 2022. Moreover, the analyst highlighted the fintech's recent announcement about re-entering the crypto space. The analyst pointed out that despite higher interest rates, SoFi delivered a 37% compound annual growth rate (CAGR) in its revenue from 2021 to 2024. He also views SoFi's product diversification as a core strength, which allows it to sustain growth across changing macro conditions. Despite all these strengths, Orenbuch has a neutral stance on SOFI stock due to valuation concerns. Orenbuch ranks 22 nd out of more than 9,800 analysts on TipRanks. Remarkably, he has a success rate of 71%, with an average return of 23.5% over a one-year period. Is SOFI a Good Stock to Buy? Like Orenbuch, Keefe, Bruyette & Woods analyst Timothy Switzer also highlighted several positives, mainly the revenue opportunities from crypto and the significantly expanded student lending opportunity following the passage of U.S. President Donald Trump's 'Big, Beautiful Bill.' While Switzer increased the price target for SOFI to $13 from $9, he reiterated a Sell rating, saying that the stock has 'run past fundamental value despite the company's exciting growth prospects and strong value proposition.' With eight Buys, six Holds, and three Sells, Wall Street has a Moderate Buy consensus rating on SoFi Technologies stock. At $15.58, the average SOFI stock price target indicates a downside risk of about 26% from current levels.
