TLDR
- Jim Cramer reversed course on SoFi $SOFI, calling it “too cheap to ignore” after a 40%+ pullback from its November highs to around $18.
- SoFi beat Q4 earnings estimates with $0.13 EPS vs. $0.12 consensus, and revenue of $1.01 billion, up 39.6% year-over-year.
- Management guided for $0.60 EPS in FY2026, implying ~54% earnings growth, with Cramer citing a PEG ratio of just 0.6.
- Thoroughbred Financial Services boosted its stake by 212.2% in Q3; institutions now hold 38.43% of the stock.
- Analyst consensus sits at “Hold” with a $26.34 price target; Citizens JMP recently upgraded to “Outperform” with a $30 target.
SoFi Technologies has had a rough few months. The stock dropped more than 40% from its mid-November highs, falling from $32 to around $18. That kind of pullback tends to get people talking.
Jim Cramer is talking. The CNBC host, who has followed SoFi since it was trading at $5, made headlines this week by calling the stock “too cheap to ignore” at current levels.
Cramer pointed to the company’s track record first. SoFi has beaten both revenue and EBITDA expectations in each of its last 18 quarters since going public in 2021. It has also beaten earnings estimates nine quarters in a row.
That’s not a fluke. That’s a pattern.
He also flagged the valuation. At around $18 and change, the stock trades at roughly 31 times 2026 earnings. Management has guided for $0.60 EPS this year, implying earnings growth of about 54%.
That gives SoFi a PEG ratio of just 0.6. Cramer called paying 30 times earnings for a 50%-plus growth company “a legitimate steal.”
Looking further out, the numbers get more interesting. Wall Street has SoFi trading at around 23 times 2027 estimates and under 19 times 2028. If you take management’s own guidance at face value, that 2028 multiple drops closer to 17 times.
What the Numbers Show
The most recent quarterly results back up the bullish case. SoFi reported $0.13 EPS for Q4, a penny above the $0.12 consensus. Revenue came in at $1.01 billion, topping expectations of $984.75 million and up 39.6% from the same quarter a year ago.
During the same quarter in 2024, the company posted $0.05 EPS. The year-over-year improvement is hard to ignore.
Return on equity came in at 5.88%, with a net margin of 13.34%. The company’s debt-to-equity ratio sits at a low 0.17.
SOFI opened at $19.10 on Friday. The 52-week range runs from $8.60 to $32.73. The stock is trading below both its 50-day moving average of $23.99 and its 200-day moving average of $26.05.
Analyst and Investor Activity
Not everyone is equally enthusiastic. The current analyst consensus is “Hold,” with a price target of $26.34. Seven analysts rate it a Buy, eight say Hold, and three have it as a Sell.
Citizens JMP upgraded SOFI to “Outperform” with a $30 target on February 9th. Bank of America has it at “Underperform” with a $20.50 target. Goldman Sachs trimmed its target from $27 to $24 and kept a “Neutral” rating.
On the institutional side, Thoroughbred Financial Services raised its stake by 212.2% in Q3, bringing its position to 40,140 units valued at roughly $1.06 million. Several other funds also added to positions during the period.
Insider activity was mixed. EVP Eric Schuppenhauer bought 5,000 units at $19.93 on February 5th. CTO Jeremy Rishel sold 91,837 units in December at $26.64. Over the last 90 days, insiders sold a combined 214,753 units worth approximately $5 million.
Insiders currently own 2.60% of the company. Institutions hold 38.43%.
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