Shares of SoFi Technologies fell to $15.98 during today's morning trading session -- a decrease of -3.7% that still sees the stock 40.59% above its average analyst target price of $11.37. So there may be further downside for the Diversified Financial stock, which analysts rate as hold on average. Current target prices range from $4.0 to 19.0 dollars per share.
SoFi Technologies's short interest can give us an idea of what future price movements the market expects from the stock. The short interest is the percentage of shares that are tied up in short positions, which will provide gains to the investor only if the stock price falls. The stock's short interest is 13.2% which seems to indicate a mixed sentiment on SOFI TECHNOLOGIES
When a stock is sold short, it means an investor has borrowed shares of the stock from their broker, and then sold them at the going market price. The investor hopes for the price to decline, so that they might buy those shares back at a lower price in the future. Once they do, they can return the borrowed shares to their broker, and keep the profit they made on the transaction.
We can make inferences about the market sentiment surrounding SoFi Technologies by analyzing its rate of institutional ownership. If institutions such as hedge funds and pension funds are the primary shareholders of a corporation, it most likely means that its shares are a good investment according to those institutions' analysts.
At 43.7%, the rate of institutional ownership is average, indicating that a sufficient number of institutions have concluded that it is a stable investment. Beware, however, that the rate of institutional ownership could also indicate an ongoing proxy battle or takeover attempt -- so you should also periodically check the news about a stock whose institutional ownership you are tracking.
Overall, there is mixed market sentiment towards SoFi Technologies because of an analyst belief that shares are overpriced, a hold rating, an above average percentage of its shares sold short, and only a small number of institutional investors. Investors should not base their decisions on market sentiment only, they should also be aware of a stock's fundamentals before committing.
At a glance, here are some essential statistics you may want to know about SOFI:
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It has trailing 12 month earnings per share (EPS) of $0.12 per share
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SoFi Technologies has a trailing 12 month Price to Earnings (P/E) ratio of 133.2 while the S&P 500 average is 29.3
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The company has a Price to Book (P/B) ratio of 2.83 in contrast to the S&P 500's average ratio of 4.74
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SoFi Technologies is a Finance company, and the sector average P/E and P/B ratios are 20.04 and 1.86 respectively
