SoFi Technologies Inc [NASDAQ: SOFI] plunged by -$0.02 during the normal trading session on while it closed the day at $7.03. The company report on March 5, 2024 at 9:23 PM that SoFi Technologies, Inc. Prices $750 Million Convertible Senior Notes Offering Due 2029.
SoFi Technologies, Inc. (“SoFi”) (NASDAQ: SOFI) today announced that it priced its private offering of 1.25% convertible senior notes due 2029 (the “notes”) in an aggregate principal amount of $750 million. The notes will be sold in a private offering only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). SoFi also granted the initial purchasers of the notes an option to purchase, for settlement within a period of 13 days from, and including, the date notes are first issued, up to an additional $112.5 million aggregate principal amount of notes. The issuance and sale of the notes is scheduled to settle on or about March 8, 2024, subject to customary closing conditions.
The notes will be unsecured, unsubordinated obligations of SoFi and will accrue interest at a rate of 1.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2024. The notes will mature on March 15, 2029, unless earlier repurchased, redeemed or converted. Noteholders will have the right to convert their notes prior to the close of business on the business day immediately preceding September 15, 2028 only under certain circumstances and during certain periods, and irrespective of those circumstances, will be convertible by the noteholders on or after September 15, 2028 until the close of business on the second scheduled trading day immediately preceding March 15, 2029. The initial conversion rate will be 105.8089 shares of SoFi’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $9.45 per share of SoFi’s common stock, which represents a premium of approximately 30% over the last reported sale of $7.27 per share of SoFi’s common stock on March 5, 2024), subject to adjustment in certain circumstances. Upon conversion, SoFi will settle conversions by paying or delivering, as applicable, cash and, if applicable shares of SoFi’s common stock, based on the applicable conversion rate.
SoFi Technologies Inc stock has also loss -8.82% of its value over the past 7 days. However, SOFI stock has declined by -21.36% in the 3 months of the year. Over the past six months meanwhile, it has lost -22.32% and lost -29.35% year-on date.
The market cap for SOFI stock reached $6.87 billion, with 975.86 million shares outstanding and 904.40 million shares in the current float. Compared to the average trading volume of 56.67M shares, SOFI reached a trading volume of 52576650 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about SoFi Technologies Inc [SOFI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SOFI shares is $9.03 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SOFI stock is a recommendation set at 3.06. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Morgan Stanley have made an estimate for SoFi Technologies Inc shares, keeping their opinion on the stock as Underweight, with their previous recommendation back on January 31, 2024. While these analysts kept the previous recommendation, Deutsche Bank raised their target price to Hold. The new note on the price target was released on January 10, 2024, representing the official price target for SoFi Technologies Inc stock. Previously, the target price had yet another drop from $7.50 to $6.50, while Keefe Bruyette kept a Underperform rating on SOFI stock.
The Average True Range (ATR) for SoFi Technologies Inc is set at 0.41, with the Price to Sales ratio for SOFI stock in the period of the last 12 months amounting to 2.36. The Price to Book ratio for the last quarter was 1.31, with the Price to Cash per share for the same quarter was set at 4.25. Price to Free Cash Flow for SOFI in the course of the last twelve months was 15.94.
SOFI stock trade performance evaluation
SoFi Technologies Inc [SOFI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -8.82. With this latest performance, SOFI shares dropped by -16.51% in over the last four-week period, additionally sinking by -22.32% over the last 6 months – not to mention a rise of 29.94% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SOFI stock in for the last two-week period is set at 36.54, with the RSI for the last a single of trading hit 30.45, and the three-weeks RSI is set at 40.25 for SoFi Technologies Inc [SOFI]. The present Moving Average for the last 50 days of trading for this stock 8.02, while it was recorded at 7.32 for the last single week of trading, and 8.28 for the last 200 days.
Earnings per share (EPS) analysis for SoFi Technologies Inc [SOFI] stock
With the latest financial reports released by the company, SoFi Technologies Inc posted -0.05/share EPS, while the average EPS was predicted by analysts to be reported at -0.07/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 28.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SOFI.
SoFi Technologies Inc [SOFI]: Institutional Ownership
The top three institutional holders of SOFI stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in SOFI stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in SOFI stock with ownership which is approximately 5.8325%.
