Bullish option flow was detected in SOFI stock on January 20, 2022.
Bullish Option Flow
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SoFi Technologies CEO: Our goal is to be a one-stop shop for all financial needs
On January 19, 2022, in an interview on CNBC’s Mad Money, Anthony Noto said getting regulatory approval to become national bank was a “huge milestone” for SoFi. The company can give more back to the consumer since its cost base is lower, he noted. It will be able to offer more loans at lower interest rates with the new bank charter. He added that SoFi is “absolutely going after” legacy bank accounts connected to the FDIC.
SoFi Technologies price target raised to $30 at Rosenblatt after bank charter
On January 19, 2022, Rosenblatt analyst Sean Horgan raised the firm’s price target on SoFi Technologies to $30 from $28 and keeps a Buy rating on the shares after SoFi officially received regulatory approval to become a national bank, calling it “the moment we have all been waiting for.” His adjusted EBITDA estimate for 2022 moves to $235M, which he said compares to current consensus at about $175M, and he expects consensus estimates to move “substantially higher” to incorporate the benefits of the bank charter, which he views as the primary driver of expected outperformance over the next 12 months.
SoFi Technologies news ‘significant positive catalyst,’ says Mizuho
On January 19, 2022, Mizuho analyst Dan Dolev keeps a Buy rating on SoFi Technologies with a $17 price target after the Office of the Comptroller of the Currency and Federal Reserve approved the company’s applications to become a bank holding company. While having a bank charter license helps improve credibility and trust, it “first and foremost” should help lower SoFi’s cost of capital, Dolev tells investors in a research note. He estimates the benefit could potentially be $200M-$300M of incremental adjusted EBITDA, mainly due to lower funding costs. While handling crypto as a bank holding company will likely require some disclosure changes, these issues are “fully solvable” and should not adversely impact SoFi’s future product capabilities, says the analyst. Dolev expects a positive reaction to SoFi shares today and calls the news a “significant positive catalystA stock catalyst is an engine that will drive your stock either up or down. A catalyst could be news of a new contract, SEC filings, earnings and revenue beats, merger and acquisit....”
SoFi Technologies bank approval should be positive catalyst, says Citi
On January 19, 2022, Citi analyst Ashwin Shirvaikar keeps a Buy rating on SoFi Technologies with a $20 price target after the Office of the Comptroller of the Currency conditionally approved the company’s bank charter application. SoFi also indicated receipt of the Federal Reserve’s approval to convert to a bank holding company, with formal completion in February, Shirvaikar tells investors in a research note. The bank charter is a key part of SoFi’s strategic plan as it enables the company to offer higher yields to grow its retail deposit base, benefit from longer holding periods for its balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. assets, and retail instead of warehouse funding helps on the cost side, says the analyst.
SoFi Technologies gets regulatory approval to become national bank
On January 18, 2022, SoFi Technologies “announced that the Office of the Comptroller of the Currency and the Federal Reserve have approved its applications to become a Bank Holding Company through its proposed acquisition of Golden Pacific Bancorp, Inc., and operate its bank subsidiary as SoFi Bank, National Association. SoFi expects the acquisition to close in February, subject to completion or waiver of the remaining customary closing conditions.”
📺 SoFi CEO explains how securing a bank charter will improve the fintech firm’s consumer offerings[embedyt] https://www.youtube.com/watch?v=EiBcvW5cB3s[/embedyt]
📉 SOFI Stock Technical Analysis
Both the long and short-term trends are negative. Volume is considerably higher in the last couple of days. SOFI is currently trading in the lower part of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so SOFI is lagging the market.
There is resistance at 15.09 from a trend line in the daily time frame. There is also resistance at 23.04 from a horizontal line in the daily time frame.
SOFI has a poor technical rating and the quality of the setup is also not perfect at the moment. SOFI stock has a Setup Rating of 4 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when SOFI stock consolidates and has a Setup Rating of 8 or higher.