SoFi Technologies Stock Drops Following Downgrade from KBW Analyst
SoFi Technologies experienced a significant drop in its stock price during Wednesday’s trading session. The fintech company’s shares closed down 13.9%, following a downgrade from Keefe, Bruyette & Woods (KBW) analyst Michael Perito. The analyst lowered his rating on the stock from market perform to underperform and reduced the one-year price target from $7.50 to $6.50 per share. This decline may present a buying opportunity for investors.
Before considering investing in SoFi Technologies, it’s important to note that it was not among the 10 best stocks identified by The Motley Fool Stock Advisor analyst team. For those willing to embrace volatility, SoFi could be a smart addition to their portfolio. The Stock Advisor service provides a blueprint for success, including guidance on building a portfolio and regular updates from analysts, with two new stock picks each month. Since 2002, the service has more than tripled the return of the S&P 500.
SoFi Technologies stock, which saw a significant increase in 2023, has stumbled in the first trading days of 2024. After a 3% decline on January 2nd, the stock fell an additional 13.5% on Wednesday morning. This can be attributed to investment bank Keefe, Bruyette & Woods, who downgraded the stock to underperform. Its strong fundamentals, SoFi’s stock price has more than doubled since its IPO last year, trading at a higher price-to-sales ratio than other fintech stocks.
SoFi Technologies experienced a significant drop in its stock price following a downgrade from KBW analyst Michael Perito. While this may present a buying opportunity for risk-tolerant investors, it’s important to note that the company’s long-term earnings growth remains uncertain. The Stock Advisor service, which has a track record of success, did not include SoFi in its list of top 10 stocks.
