Lending Stock Pops on Billion-Dollar Expansion Deal

There's plenty of room for analyst upgrades too

Emma Duncan

Managing Editor

Oct 14, 2024 at 2:01 PM

SOFI

Consumer lending name SoFi Technologies Inc (NASDAQ:SOFI) is charging higher this afternoon, following an announcement that the company has struck a $2 billion expansion deal with Fortress Investment Group. In response, SOFI is up 10% to trade at $9.99, at last glance.

Thanks today's bull gap, SoFi Technologies stock is now fighting resistance at the $10 level, while also managing a climb into the black for 2024. The shares have added 22% over the past 12 months and added 65% since its August bottom.

So far, an impressive 576,000 calls and 197,000 puts have exchanged hands, 4 times the average daily volume. Most popular is the October 10 call, where new positions are being bought to open.

Currently 18.2% of the stock's total available float is sold short, alongside a recent 4.4% drop in short interest over the past month. This would take bears just over four days to cover, at the stock's average pace of daily trading.

There is also plenty of room for upgrades, as 13 of the 18 covering brokerage firms sport a "hold" or worse rating. Further, the stock's average 12-month price target of $8.46 comes at a 15.4% deficit to current levels.

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