Fintech
SoFi (SOFI): Hedge funds have been accumulating this Fintech stock
Shares of financial technology company SoFi (NASDAQ:SOFI) are under pressure and have lost more than 35% of their value since the beginning of the year. While SOFI has seen a significant pullback, hedge funds have capitalized on its low stock price and piled on it.
TipRanks hedge fund trading asset tool (which analyzes data from Form 13-Fs to offer hedge fund signals) shows that these financial experts favor SoFi in the fintech sector.
With this context, let’s take a look at hedge fund trading activity for SOFI stock.
Hedge funds bought 14.2 million SoFi shares
Concerns about SoFi’s lending and credit quality have weighed on its stock price. Additionally, the company has raised capital from issuance of convertible senior notes. This has sparked concerns about potential capital dilution, adding further pressure on SoFi shares.
According to stock analysis tool TipRanks, “The bulls say, the bears say,” Analysts bearish on SOFI stock believe concerns about credit trends could continue to weigh on the stock. Nonetheless, hedge funds are bullish on SOFI stock.
THE The confidence signal from hedge funds is very positive for SOFI shares based on the activity of eight hedge funds. Hedge funds increased their SOFI holdings by 14.2 million shares last quarter.
Will SoFi Become a Penny Stock?
The continued decline in SoFi stock suggests it is heading towards penny stocks (more on penny stocks Here) territory. However, Average price target of Wall Street analysts of $8.61 implies that it will reverse course and rise by approximately 34.11% from current levels.
However, Wall Street remains on the sidelines. SoFi stock has four buy, nine hold and three sell recommendations for a consensus rating of Hold.
Bottom line
While hedge funds show strong confidence in SoFi, Wall Street analysts remain on the sidelines. This conflicting data suggests that investors should consider multiple factors when making investments. Investors can take advantage TipRanks Expert Center tools to obtain complete information on the SOFI stock.