KBW cuts SoFi price target to $15, citing $1 B Q3 headwind and insider sale filing
Keefe, Bruyette & Woods lowered its price target for SoFi Technologies to $15 from $16 and kept an Underperform rating. The analyst warned that higher interest rates, fair‑value accounting pressures and rapid balance‑sheet expansion could create a headwind of more than $1 billion in the third quarter. SoFi reported quarterly revenue of about $1.22 billion and net income of roughly $156 million, but its cash flow remains deeply negative. A Form 144 filing indicating an insider’s planned share sale added further short‑term pressure on the stock.
Why it matters
The target cut signals that KBW expects earnings and capital to be hit by a $1 billion‑plus drag, which could depress the share price ahead of the Q3 earnings release on Oct. 27. The insider sale filing suggests additional supply could weigh on the stock in the near term.
Key facts
- 1KBW reduced the price target for SoFi to $15 from $16 and maintained an Underperform rating. investing.com
- 2The analyst cited a projected Q3 headwind of more than $1 billion linked to higher rates, fair‑value accounting and fast balance‑sheet growth. quiverquant.com
- 3SoFi’s most recent quarter showed revenue of $1.22 billion and net income of $156.6 million. timothysykes.com
- 4Diluted EPS for the quarter was $0.12. stockstotrade.com
- 5Free cash flow for the quarter was approximately -$3.99 billion. timothysykes.com
- 6An insider filed a Form 144 indicating planned share sales. timothysykes.com
Summary written by AlphAI AI Desk from 18 of 18 sources. Not investment advice. Figures are as stated by the linked sources.