TLDR
- CNBC’s Jim Cramer changed his tune on SoFi $SOFI, describing it as “too cheap to ignore” following a steep 40%+ decline from November peaks to approximately $18.
- The fintech company exceeded Q4 expectations with earnings per share of $0.13 versus the anticipated $0.12, while revenue reached $1.01 billion—a 39.6% year-over-year increase.
- Company leadership projects FY2026 EPS at $0.60, suggesting approximately 54% earnings expansion, with Cramer highlighting a PEG ratio of merely 0.6.
- Thoroughbred Financial Services increased its position by 212.2% during Q3; institutional ownership currently stands at 38.43%.
- Wall Street consensus remains at “Hold” with an average price target of $26.34; Citizens JMP recently raised its rating to “Outperform” with a $30 objective.
SoFi Technologies has experienced significant turbulence in recent months. Since mid-November, shares have plummeted over 40%, declining from $32 down to approximately $18. Such dramatic corrections naturally spark considerable discussion.
Enter Jim Cramer. The prominent CNBC personality, who’s been tracking SoFi since its $5 trading days, generated headlines recently by characterizing the stock as “too cheap to ignore” at present valuations.
Cramer began by emphasizing the company’s consistent execution. Since its 2021 public debut, SoFi has exceeded both revenue and EBITDA projections for 18 consecutive quarters. Additionally, the company has surpassed earnings expectations for nine straight quarters.
This isn’t coincidence. It’s consistency.
He also highlighted the compelling valuation proposition. At approximately $18 per share, the stock is valued at roughly 31 times projected 2026 earnings. With management’s guidance calling for $0.60 EPS this fiscal year, that translates to earnings growth approaching 54%.
This calculation yields SoFi a PEG ratio of merely 0.6. Cramer characterized paying 30 times earnings for a company growing earnings above 50% as “a legitimate steal.”
Extending the timeline reveals even more compelling metrics. Street estimates place SoFi at approximately 23 times 2027 projections and below 19 times 2028 forecasts. Using management’s own projections, that 2028 multiple contracts to roughly 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 totaled $1.01 billion, surpassing expectations of $984.75 million and representing 39.6% growth versus the prior-year period.
For context, the company generated $0.05 EPS during Q4 2024. The year-over-year progression is substantial.
Return on equity registered at 5.88%, accompanied by a net margin of 13.34%. The company maintains a conservative debt-to-equity ratio of 0.17.
SOFI began Friday’s session at $19.10. Its 52-week trading range extends from $8.60 to $32.73. Current pricing sits beneath both the 50-day moving average of $23.99 and the 200-day moving average of $26.05.
Analyst and Investor Activity
Wall Street sentiment remains divided. Current analyst consensus stands at “Hold,” with an average price target of $26.34. The breakdown includes seven Buy ratings, eight Hold recommendations, and three Sell ratings.
Citizens JMP elevated SOFI to “Outperform” with a $30 price objective on February 9th. Bank of America maintains an “Underperform” stance with a $20.50 target. Goldman Sachs reduced its target from $27 to $24 while maintaining a “Neutral” rating.
Regarding institutional movements, Thoroughbred Financial Services expanded its stake by 212.2% during Q3, elevating its holdings to 40,140 shares valued at approximately $1.06 million. Multiple additional institutional investors also expanded positions throughout the quarter.
Insider transactions presented a mixed picture. EVP Eric Schuppenhauer acquired 5,000 shares at $19.93 on February 5th. CTO Jeremy Rishel divested 91,837 shares in December at $26.64. Across the past 90 days, insiders collectively sold 214,753 shares totaling roughly $5 million.
Insider ownership currently represents 2.60% of outstanding shares. Institutional investors control 38.43%.
