SoFi Technologies Surpasses Analyst Price Target: What Comes Next?
Recently, shares of SoFi Technologies Inc (Symbol: SOFI) have outperformed the average analyst 12-month price target of $13.97, now trading at $14.04 per share. When a stock reaches its target price, analysts typically have two options: they may either downgrade their rating based on valuation concerns or adjust their target price upward. The decision often hinges on recent business developments that may have influenced the stock’s price movement. Positive advancements could prompt analysts to raise their targets further.
A total of 16 analysts contribute to the Zacks coverage universe for SoFi Technologies, creating the average target. However, this average masks a range of predictions. Among these analysts, some suggest a much lower target of $4.00, while another is optimistic, setting a target as high as $20.00. The standard deviation of these estimates stands at $4.835, indicating notable variance in their outlooks.
Investors often look at the average price target as a “wisdom of crowds” approach. This metric incorporates multiple viewpoints rather than relying on a singular expert assessment. With SOFI currently above the average price target, investors are prompted to reevaluate the company’s prospects. They must consider whether the stock price of $13.97 represents a potential plateau or if further gains are in store. Additionally, is it time to cash in some profits, or could the stock continue to rise?
| Recent SOFI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 6 | 5 | 5 | 5 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 8 | 8 | 8 | 8 |
| Sell ratings: | 2 | 2 | 3 | 3 |
| Strong sell ratings: | 2 | 2 | 1 | 1 |
| Average rating: | 2.63 | 2.72 | 2.65 | 2.65 |
The average rating in the table is scored from 1 to 5, where 1 is a Strong Buy and 5 is a Strong Sell. This article utilized data provided by Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
