Schaeffer's 43rd Anniversary Stock Picks in 2024

Behind SoFi Technologies Stock's Bear Notes

SOFI is already down more than 37% in 2024

Deputy Editor
Jul 9, 2024 at 10:39 AM
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The shares of SoFi Technologies Inc (NASDAQ:SOFI) are rapidly approaching penny stock territory, down 2.8% at $6.18 at last glance. Today's negative price action follows two price-target cuts, with Barclays adjusting down to $8 from $10 and KBW moving to $7 from $7.50.

Coming into today, covering brokerages were overwhelmingly pessimistic on SOFI, with 13 of 18 recommending a "hold" or worse. Plus, short sellers are building their positions, with short interest is up 3.7% in the last two reporting periods. The 186.07 million shares sold short now make up 18.9% of the stock's available float. 

Options traders lean bullish toward SOFI, however. This is per the equity's International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) 50-day put/call volume ratio of 5.29, which sits higher than all readings from the past year. An unwinding of this optimism could result in more tailwinds for the security.

SoFi Technologies stock has steadily moved lower since an early March bear gap that followed the company's proposed convertible senior notes offering. In fact, SOFI has lost 25.6% over the last six months, and currently carries a 37.8% year-to-date deficit.

 

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