TLDR
- Jim Cramer changed his stance on SoFi $SOFI, describing the stock as “too cheap to ignore” following a 40%+ decline from November peaks to approximately $18.
- SoFi exceeded Q4 earnings forecasts with $0.13 EPS compared to $0.12 analyst expectations, plus revenue of $1.01 billion, representing 39.6% year-over-year growth.
- Company leadership projects $0.60 EPS for FY2026, suggesting approximately 54% earnings expansion, with Cramer highlighting a PEG ratio of 0.6.
- Thoroughbred Financial Services increased its position by 212.2% during Q3; institutional ownership currently stands at 38.43% of outstanding shares.
- Wall Street consensus remains “Hold” with a $26.34 average price target; Citizens JMP recently moved to “Outperform” with a $30 target.
SoFi Technologies has experienced significant volatility in recent months. The shares declined over 40% from mid-November peaks, sliding from $32 down to approximately $18. This magnitude of price movement naturally attracts attention from market observers.
Jim Cramer has weighed in. The CNBC personality, who has tracked SoFi since its $5 trading days, made waves this week by describing the stock as “too cheap to ignore” at present valuation levels.
Cramer emphasized the company’s execution history first. SoFi has surpassed both revenue and EBITDA projections in each of its previous 18 quarters since its 2021 public debut. The company has also exceeded earnings forecasts for nine consecutive quarters.
This represents consistency. This demonstrates a reliable pattern.
He also highlighted the valuation metrics. At approximately $18 per share, the stock trades at roughly 31 times projected 2026 earnings. Company management has set guidance for $0.60 EPS this year, representing earnings growth of approximately 54%.
This calculation gives SoFi a PEG ratio of merely 0.6. Cramer characterized paying 30 times earnings for a company growing earnings by over 50% as “a legitimate steal.”
Projecting ahead, the metrics become increasingly attractive. Wall Street models place SoFi at approximately 23 times 2027 projections and below 19 times 2028 estimates. Using management’s own forward guidance, that 2028 multiple approaches 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 a penny. Revenue reached $1.01 billion, surpassing expectations of $984.75 million and climbing 39.6% versus the prior year period.
During the comparable 2024 quarter, the company posted $0.05 EPS. The year-over-year progression demonstrates meaningful improvement.
Return on equity registered at 5.88%, with a net margin of 13.34%. The company’s debt-to-equity ratio remains conservative at 0.17.
SOFI opened Friday trading at $19.10. The 52-week range spans from $8.60 to $32.73. The stock currently trades beneath both its 50-day moving average of $23.99 and its 200-day moving average of $26.05.
Analyst and Investor Activity
Wall Street opinion remains divided. The prevailing analyst consensus stands at “Hold,” with an average price target of $26.34. Seven analysts assign Buy ratings, eight recommend Hold, and three maintain Sell ratings.
Citizens JMP elevated SOFI to “Outperform” with a $30 price target on February 9th. Bank of America maintains “Underperform” with a $20.50 target. Goldman Sachs reduced its target from $27 down to $24 while maintaining a “Neutral” stance.
Regarding institutional positioning, Thoroughbred Financial Services expanded its stake by 212.2% during Q3, bringing its holdings to 40,140 units valued at approximately $1.06 million. Multiple other institutional investors also increased positions during this timeframe.
Insider transactions showed mixed signals. EVP Eric Schuppenhauer purchased 5,000 units at $19.93 on February 5th. CTO Jeremy Rishel divested 91,837 units in December at $26.64. Throughout the last 90 days, insiders sold a total of 214,753 units worth roughly $5 million.
Insiders currently control 2.60% of the company. Institutional investors hold 38.43%.
