TLDR
- CNBC’s Jim Cramer has changed his stance on SoFi $SOFI, declaring it’s currently “too cheap to ignore” following a steep 40%+ decline from November peaks down to approximately $18.
- The fintech company exceeded Q4 projections with earnings per share of $0.13 compared to analyst expectations of $0.12, while revenue reached $1.01 billion, representing a 39.6% annual increase.
- Company leadership projected $0.60 in EPS for FY2026, suggesting approximately 54% earnings expansion, with Cramer highlighting a PEG ratio of merely 0.6.
- Thoroughbred Financial Services expanded its position by 212.2% during Q3; institutional ownership currently represents 38.43% of outstanding shares.
- Wall Street consensus remains “Hold” with an average price objective of $26.34; Citizens JMP recently raised its rating to “Outperform” with a $30 price target.
SoFi Technologies has experienced significant turbulence in recent months. Shares plummeted more than 40% from their mid-November peak, sliding from $32 down to approximately $18. Such a dramatic correction naturally attracts attention from market observers.
Jim Cramer has weighed in. The prominent CNBC commentator, who has tracked SoFi since its $5 trading days, generated headlines this week by declaring the shares “too cheap to ignore” at their current valuation.
Cramer emphasized the company’s execution history initially. SoFi has exceeded both revenue and EBITDA projections in every single quarter since its 2021 public debut—18 consecutive quarters. Additionally, it has surpassed earnings forecasts for nine straight quarters.
This isn’t coincidence. It demonstrates consistent operational excellence.
He also highlighted the attractive valuation metrics. Trading around $18, the shares command approximately 31 times projected 2026 earnings. Company management has set $0.60 EPS guidance for this year, representing 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 earnings over 50% as “a legitimate steal.”
Extending the analysis further, the projections become increasingly compelling. Wall Street analysts have SoFi valued at approximately 23 times 2027 estimates and below 19 times 2028 forecasts. Using management’s published guidance, that 2028 multiple contracts to roughly 17 times.
What the Numbers Show
The latest quarterly performance supports the optimistic perspective. SoFi delivered $0.13 EPS for Q4, exceeding the $0.12 consensus by one cent. Revenue totaled $1.01 billion, surpassing projections of $984.75 million and representing a 39.6% year-over-year increase.
In the comparable 2024 quarter, the company generated $0.05 EPS. The annual 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 trading Friday at $19.10. The 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
Not all market professionals share equal optimism. The prevailing analyst consensus stands at “Hold,” with an average price objective 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” rating with a $20.50 target. Goldman Sachs reduced its target from $27 to $24 while maintaining a “Neutral” stance.
Regarding institutional movements, Thoroughbred Financial Services increased its holdings by 212.2% in Q3, expanding its position to 40,140 units valued at approximately $1.06 million. Multiple other institutional investors similarly expanded positions during this timeframe.
Insider transactions showed mixed signals. EVP Eric Schuppenhauer acquired 5,000 units at $19.93 on February 5th. CTO Jeremy Rishel divested 91,837 units in December at $26.64. Throughout the previous 90 days, company insiders sold a total of 214,753 units worth roughly $5 million.
Insiders currently control 2.60% of outstanding shares. Institutional investors hold 38.43%.
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