New York, January 6, 2026, 16:55 ET — After-hours
SoFi Technologies Inc (SOFI.O) shares closed down 7.9% at $26.98 on Tuesday and were little changed after the bell. The stock gave back a chunk of the prior session’s rally.
The slide followed a Bank of America note that resumed coverage with an underperform rating and a $20.50 price target, keeping valuation concerns in play. A price target is an analyst’s estimate of where a stock should trade, usually over the next 12 months; the firm flagged “limited upside at the current multiple,” or valuation measure. TipRanks
A filing showed SoFi has now sold more shares in its December stock offering after the underwriting banks exercised a 30-day option to buy additional stock. SoFi said that brought total shares sold in the deal to 57,754,660 at $27.50 per share — a structure that can dilute existing holders by spreading future earnings across a larger share count.
Bank of America raised its price objective to $20.50 from $17.50 but kept its underperform stance, while calling the capital raise a “modest positive” that gives the company “ammunition” to fund growth. The firm trimmed its adjusted earnings-per-share forecasts — a profit measure that excludes some one-offs — to $0.39 for 2025, $0.64 for 2026 and $0.93 for 2027, and said its target was based on 22 times its 2027 EPS estimate. Investing.com UK
Goldman Sachs analyst Michael Ng lowered his price target on SoFi to $24 from $27 and kept a neutral rating, another sign some firms are dialing back expectations after the run-up.
Barclays analyst Terry Ma took a more even-handed tack, maintaining an equal-weight rating while lifting the price target to $28 from $23, according to a report summary.
SoFi swung sharply on the day, after opening near $29.23 and sliding to an intraday low around $26.04, with volume topping 118 million shares. The broader U.S. market finished higher, with the S&P 500 closing at a fresh record.
But the stock sale keeps a supply overhang in view, and investors remain exposed to any stumble in SoFi’s credit performance or loan growth if consumer stress shows up in results. A weaker outlook for 2026 could also force a further reset in the valuation multiple.
Next up is SoFi’s fourth-quarter and full-year 2025 report on Friday, January 30, with results due around 7 a.m. ET and a conference call at 8 a.m. ET, when investors will press for guidance, credit trends and a clearer plan for the new capital.
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