In a significant move, IQ EQ Fund Management Ireland Ltd has acquired a new stake in SoFi Technologies, Inc. (NASDAQ: SOFI) during the second quarter of 2023. According to the latest 13F filing with the Securities and Exchange Commission, the fund purchased 46,131 shares of SoFi’s stock, valued at approximately $840,000. This acquisition highlights growing interest among institutional investors in the fintech company.
Several other hedge funds have also adjusted their holdings in SoFi Technologies recently. Brighton Jones LLC increased its stake by 2.0% in the fourth quarter, now owning 719,288 shares valued at $11,077,000 after acquiring an additional 14,281 shares. Meanwhile, GAMMA Investing LLC raised its holdings by an impressive 39.8% in the first quarter, bringing its total to 8,283 shares worth $96,000. Asset Management One Co. Ltd. also expanded its position by 55.0%, now holding 8,114 shares valued at $94,000.
Other notable acquisitions include Sequoia Financial Advisors LLC, which bought a new position valued at $181,000, and Diversified Trust Co, which acquired a new stake worth $127,000. Institutional investors and hedge funds now control 38.43% of SoFi’s stock.
Analysts’ Ratings and Stock Performance
SoFi Technologies has received attention from various research analysts. Redburn Atlantic upgraded the company to a “hold” rating on August 1, 2023. In a more optimistic outlook, Mizuho raised its price target from $26.00 to $31.00, rating the stock as “outperform” on September 18, 2023. Other notable price adjustments include Keefe, Bruyette & Woods, which set a target of $20.00, and Citigroup, which increased its price target from $28.00 to $37.00.
Currently, one analyst has rated SoFi with a “Strong Buy,” while seven have given it a “Buy” rating. Twelve analysts have assigned a “Hold” rating, and three issued a “Sell” rating. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a target price of $23.82.
On October 28, 2023, SoFi Technologies reported its earnings results, revealing an earnings per share (EPS) of $0.11, surpassing analyst expectations of $0.09. The company recorded a net margin of 19.29% and a return on equity of 5.52%. Revenue amounted to $949.63 million, significantly exceeding estimates of $880.33 million, reflecting a year-over-year increase of 37.7%.
Insider Transactions and Company Overview
Insider trading activity at SoFi has also been noteworthy. On September 18, 2023, Jeremy Rishel, the Chief Technology Officer, sold 98,733 shares at an average price of $27.50, totaling approximately $2,715,157.50. Following this transaction, Rishel holds 759,553 shares valued around $20,887,707.50, marking an 11.50% decrease in his position. Additionally, Kelli Keough, the Executive Vice President, sold 10,578 shares for approximately $234,091.14 on August 20, 2023.
Over the past ninety days, insiders have sold 129,383 shares worth $3,513,171. Currently, insiders own 2.60% of the company’s stock.
SoFi Technologies operates in the financial services sector, providing a wide range of offerings including lending, a technology platform, and financial services across the United States, Latin America, and Canada. The company’s services enable members to borrow, save, spend, invest, and protect their money. As SoFi continues to evolve, its performance and investor interest will be closely monitored in the coming quarters.
