Why Is SoFi (SOFI) Stock Down to New 52-Week Lows Today?

SoFi Technologies (NASDAQ:SOFI) stock isn’t doing so well on Monday after the stock dropped to a new 52-week low.

the Social Finance (SoFi stock) logo is displayed on a smartphone.
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So what’s behind this fall for SOFI stock? An extension from the U.S. government on student loan repayments continues to chip away at the company’s shares. A large portion of its business comes from the revenue it makes off of student loans.

As if that wasn’t bad enough, SoFi acknowledged the student loan moratorium in a guidance update. According to the company, it expects a further extension in August that will keep the moratorium in place through 2022.

As a result, SoFi is lowering its guidance for the full year of 2022. This has it expecting revenue of $1.47 billion alongside adjusted earnings of $100 million. Its previous outlook was for $1.57 billion in revenue and $180 million in adjusted earnings. It’s worth pointing out that Wall Street’s revenue estimate for 2022 is $1.46 billion.

Recent analysts’ opinions on SOFI stock also haven’t been helping out its shares. That came as several firms dropped their price targets for the company. That includes Citigroup at $17, Bank of America at $12, and Wedbush at $15 per share.

The analyst consensus rating for SOFI stock is still positive at a “buy” but only just barely. Of the 13 analysts covering the stock, seven have “buy” ratings and six have “hold” ratings. The analyst consensus price target is also sitting at $15.88 per share.

SOFI stock is down 2.5% as of Monday morning.

There’s more stock market news for today below!

InvestorPlace offers up all of the latest stock market coverage that traders need to know about for Monday! Among that is Shopify (NYSE:SHOP) stock split plans, analyst opinions on Warner Bros. Discovery (NASDAQ:WBD) stock, as well as what has Hoth Therapeutics (NASDAQ:HOTH) stock rocketing higher. You can find out all about these matters at the following links!

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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