TLDR
- Jim Cramer from CNBC has reversed his position on SoFi $SOFI, calling the stock “too cheap to ignore” after shares tumbled over 40% from November highs to around $18.
- SoFi surpassed Q4 expectations with $0.13 earnings per share versus the $0.12 analyst forecast, while generating $1.01 billion in revenue—a 39.6% year-over-year surge.
- Management forecasts FY2026 EPS of $0.60, implying roughly 54% earnings growth, which Cramer notes results in a PEG ratio of just 0.6.
- Thoroughbred Financial Services boosted its stake by 212.2% in Q3; institutional investors now own 38.43% of all shares.
- Analyst consensus sits at “Hold” with a mean price target of $26.34; Citizens JMP recently upgraded to “Outperform” with a $30 target.
SoFi Technologies has weathered substantial volatility over recent months. The stock crashed more than 40% from its November highs, tumbling from $32 to roughly $18. This kind of steep selloff inevitably draws scrutiny from market commentators.
Enter Jim Cramer. The well-known CNBC host, who has followed SoFi since it traded at $5, made waves this week by proclaiming the stock “too cheap to ignore” at present prices.
Cramer first pointed to the company’s track record of execution. SoFi has beaten both revenue and EBITDA expectations in every quarter since going public in 2021—a perfect 18-quarter streak. Moreover, it has topped earnings estimates for nine consecutive quarters.
This pattern isn’t random. It reflects disciplined operational performance.
He also stressed the compelling valuation picture. At approximately $18, shares trade at around 31 times anticipated 2026 earnings. Management projects $0.60 in EPS for the fiscal year, implying roughly 54% earnings growth.
This math gives SoFi a PEG ratio of just 0.6. According to Cramer, paying 30 times earnings for a business expanding earnings by more than 50% qualifies as “a legitimate steal.”
Looking ahead, the valuation case strengthens further. Street estimates place SoFi at approximately 23 times 2027 earnings and under 19 times 2028 projections. Based on management’s published targets, that 2028 multiple compresses to around 17 times.
What the Numbers Show
The most recent quarterly report reinforces the bullish narrative. SoFi posted $0.13 in EPS for Q4, beating the consensus estimate of $0.12 by a penny. Revenue hit $1.01 billion, topping expectations of $984.75 million and marking a 39.6% jump from the prior year.
In the same quarter of 2024, the company earned $0.05 per share. The year-over-year improvement is striking.
Return on equity came in at 5.88%, while net margin reached 13.34%. The firm operates with a modest debt-to-equity ratio of 0.17.
SOFI opened Friday trading at $19.10. The stock’s 52-week range extends from $8.60 to $32.73. Shares presently sit below both the 50-day moving average of $23.99 and the 200-day moving average of $26.05.
Analyst and Investor Activity
Wall Street analysts aren’t uniformly bullish. The current consensus rating is “Hold,” with an average price target of $26.34. Seven analysts rate it Buy, eight recommend Hold, and three advise Sell.
Citizens JMP upgraded SOFI to “Outperform” with a $30 price target on February 9th. Bank of America holds an “Underperform” rating with a $20.50 target. Goldman Sachs lowered its target from $27 to $24 while keeping a “Neutral” rating.
On the institutional front, Thoroughbred Financial Services expanded its position by 212.2% during Q3, growing its stake to 40,140 shares worth approximately $1.06 million. Several other institutional buyers added shares during the same period.
Insider activity presented a mixed picture. EVP Eric Schuppenhauer purchased 5,000 shares at $19.93 on February 5th. CTO Jeremy Rishel sold 91,837 shares in December at $26.64. Over the past 90 days, insiders offloaded a combined 214,753 shares valued at roughly $5 million.
Insiders own 2.60% of the company. Institutional investors control 38.43%.
