The company's top- and bottom-lines beat analysts' estimates
SoFi Technologies Inc (NASDAQ:SOFI) is surging after the fintech company's impressive third-quarter earnings report. SoFi posted losses of 5 cents per share, which beat analysts' estimates of 9 cents, while the company's revenue of $270.01 million also topped expectations, rising 35% from last year. The firm also lifted its full-year revenue forecast.
SOFI is up 16.2% at $23.73 last check, and is looking to open at its highest level in nearly half a year. The security was plummeting ahead of today's trading, though support at the 30-day moving average kept most of these gains in check. Year-to-date, SOFI is up more than 64%.
In response, Jefferies, lifted its price target to $26 from $24, noting that "lending drove the beat," and adding that the company's new customer growth was the company's second best on record. This bull note is especially impressive considering the incredibly bullish sentiment among the brokerage bunch. All five in coverage call SOFI a "strong buy," and the 12-month consensus price target of $25.58 is a 7.1% premium to last night's close.
An unwinding of short interest could put some wind in the stock's sails. Short interest almost doubled in the last two reporting periods, shooting up 88.9%. The 46.27 million shares sold short make up 8.5% of the stock's available float, and it would take nearly two days to cover these pessimistic positions at SOFI's average daily pace of trading.