New York, Jan 6, 2026, 11:11 EST
SoFi Technologies shares fell nearly 9% on Tuesday after it completed the sale of 57.8 million shares in a public offering priced at $27.50, a deal that implies gross proceeds of about $1.59 billion. The stock was down 8.9% at $26.68 in late morning trading. Investing.com Canada
The move puts fresh focus on dilution, with investors weighing how the added equity capital supports growth against the near-term pressure of a larger share count. It also lands as traders crowd into positions ahead of SoFi’s next results, a catalyst that has tended to drive sharp swings in the stock.
SoFi has pushed deeper into consumer lending and digital banking as fintech firms fight for deposits and prime borrowers, while traditional banks defend their turf with rates and rewards. In that fight, sentiment can turn fast, and the options market is signalling that traders expect more volatility around earnings.
A U.S. securities filing showed the underwriters exercised a 30-day option on Jan. 2 and SoFi completed the issuance and sale of the additional shares on Jan. 5. The filing listed Goldman Sachs, BofA Securities, Citigroup Global Markets, Deutsche Bank Securities and Mizuho Securities USA as underwriters. SEC
Options trading has been heavily skewed to calls, contracts that give buyers the right to purchase shares at a set price, according to TipRanks data. The report put call volume at more than three times normal levels and pegged the options market’s expected post-earnings move at about 13.73% in either direction, while Wall Street estimates called for revenue of roughly $978.6 million and earnings of 11 cents per share for the quarter. TipRanks
Barclays analyst Terry Ma lifted his price target on SoFi to $28 from $23 and kept an Equal Weight rating, citing a “benign” credit environment as a setup for loan growth and a better mortgage origination market in 2026. TipRanks
Goldman Sachs analyst Michael Ng cut his price target to $24 from $27 and maintained a Neutral rating, underscoring how divided the Street remains on valuation and upside after the stock’s strong run. TipRanks
SoFi has argued that its borrower base skews more affluent than peers, which can matter if credit conditions soften. CFO Chris Lapointe has said the average SoFi student-loan borrower has a “weighted average income of $157,000” and a “weighted average FICO score of 773,” while the company reported more than 12.6 million customers after adding 905,000 net new in the third quarter ended Sept. 30. The Motley Fool
