TLDR
- CNBC’s Jim Cramer shifted his position on SoFi $SOFI, declaring it “too cheap to ignore” following a steep 40%+ decline from November peaks to approximately $18.
- Q4 results exceeded projections with earnings per share of $0.13 versus the $0.12 estimate, while revenue reached $1.01 billion, representing 39.6% year-over-year growth.
- Company leadership forecasts $0.60 EPS for FY2026, suggesting roughly 54% earnings expansion, with Cramer highlighting a PEG ratio of merely 0.6.
- Thoroughbred Financial Services increased its position by 212.2% during Q3; institutional ownership currently stands at 38.43%.
- Wall Street consensus rates the stock as “Hold” with a $26.34 average price target; Citizens JMP recently raised its rating to “Outperform” with a $30 objective.
SoFi Technologies has experienced significant turbulence in recent months. The fintech company’s shares plummeted over 40% from their mid-November peak, sliding from $32 down to approximately $18. Such dramatic selloffs inevitably spark debate among investors.
Enter Jim Cramer. The prominent CNBC personality, who has tracked SoFi since its $5 trading days, generated buzz this week by declaring the shares “too cheap to ignore” at present valuations.
Cramer initially emphasized the company’s execution history. SoFi has consistently surpassed both revenue and EBITDA projections across all 18 quarters since its 2021 public debut. Additionally, the company has topped earnings forecasts for nine consecutive quarters.
This isn’t random chance. It’s consistent performance.
He also highlighted the valuation opportunity. Trading around $18, the stock commands approximately 31 times projected 2026 earnings. With management’s guidance calling for $0.60 EPS this year, that represents roughly 54% earnings expansion.
This calculation yields SoFi a PEG ratio of merely 0.6. Cramer characterized paying 30 times earnings for a company growing above 50% as “a legitimate steal.”
Projecting ahead, the metrics become even more compelling. Street estimates have SoFi valued at approximately 23 times 2027 projections and below 19 times 2028 expectations. Using management’s own targets, that 2028 multiple contracts closer to 17 times.
What the Numbers Show
The latest quarterly performance supports the optimistic perspective. SoFi delivered $0.13 EPS for Q4, edging past the $0.12 Street estimate. Revenue totaled $1.01 billion, exceeding the $984.75 million forecast and climbing 39.6% compared to the prior-year period.
During Q4 2024, the firm reported $0.05 EPS. The year-over-year progression is substantial.
Return on equity registered at 5.88%, accompanied by a net margin of 13.34%. The company maintains a conservative debt-to-equity ratio of 0.17.
SOFI began Friday’s session at $19.10. Its 52-week trading range spans from $8.60 to $32.73. Shares currently trade beneath both the 50-day moving average of $23.99 and the 200-day moving average of $26.05.
Analyst and Investor Activity
Market sentiment remains divided. The prevailing analyst consensus stands at “Hold,” with an average price target of $26.34. Seven analysts recommend Buy, eight suggest Hold, and three maintain Sell ratings.
Citizens JMP elevated SOFI to “Outperform” with a $30 price objective on February 9th. Bank of America maintains an “Underperform” stance with a $20.50 target. Goldman Sachs reduced its target from $27 down to $24 while retaining a “Neutral” rating.
Regarding institutional movements, Thoroughbred Financial Services expanded its stake by 212.2% during Q3, growing its holdings to 40,140 shares worth approximately $1.06 million. Multiple other institutional investors similarly boosted their positions throughout the quarter.
Insider transactions painted a mixed picture. EVP Eric Schuppenhauer acquired 5,000 shares at $19.93 on February 5th. CTO Jeremy Rishel divested 91,837 shares in December at $26.64. Throughout the previous 90 days, company insiders sold a total of 214,753 shares valued at roughly $5 million.
Insiders maintain 2.60% ownership of the company. Institutional investors control 38.43%.
