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5 Big Investors Betting Against SOFI Stock

  • SoFi (SOFI) reported impressive revenue and EPS during Q3, with both metrics beating analyst estimates.
  • The company also raised its full-year revenue guidance to between $1.517 billion and $1.522 billion.
  • Shares of SOFI stock are down over 60% year-to-date.
SOFI stock - 5 Big Investors Betting Against SOFI Stock

Source: shutterstock.com/rafapress

SoFi (NASDAQ:SOFI) stock is up by over 5% after the company reported its third-quarter earnings. Adjusted revenue tallied in at $419 million, up 51% year-over-year (YOY), while earnings per share was a loss of nine cents. Both metrics came above the consensus analyst estimate for revenue of $393 million and an EPS loss of 11 cents.

Profitability based on adjusted earnings before interest, taxes, deductions, and amortizations (EBITDA) jumped as well, coming in at $44 million, up an impressive 332% YOY and beating the analyst estimate for $29.1 million by 51%.

Meanwhile, SoFi’s bank charter helped boost deposits by 86% to $5 billion. The company is well-known for placing an emphasis on only serving customers with acceptable FICO scores — the median FICO score was 750 for customers who opened new direct deposit accounts in Q3.

CEO Anthony Noto added:

“We added nearly 424,000 new members, and ended with over 4.7 million total members, up 61% year-over-year. We also added over 635,000 new products, and ended with nearly 7.2 million total products, a 69% annual increase.”

On the other hand, the federal loan student moratorium continues to detrimentally affect on SoFi. Total student loan origination volume fell 53% to $457.18 million, “down more than 50% from the average pre-pandemic volume.” Total Q3 origination volume was $3.48 billion, driven heavily by a personal loan volume of $2.80 billion. On the bright side for the company, the moratorium is set to expire on Dec. 31, with payments expected to resume the following day.

With that in mind, let’s take a look at the investors betting against SOFI stock.

5 Big Investors Betting Against SOFI Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q2, the institutional put/call ratio was 1.79, up from 1.31 during the previous quarter. That’s equivalent to 36.79 million call options and 65.72 million put options, implying a significant bearish stance. Vanguard is the largest shareholder with a 61.96 million share stake, followed by SoftBank (OTCMKTS:SFTBY) with a 45.42 million share stake. So, who’s betting against SoFi?

  1. Susquehanna International Group owns put options against 11.06 million shares. The firm also owns call options against 10.18 million shares.
  2. Goldman Sachs (NYSE:GS) owns put options against 6.52 million shares and call options against 321,500 shares.
  3. UBS Group (NYSE:UBS) owns put options against 4.74 million shares.
  4. D.E. Shaw and Company owns put options against 4.35 million shares and call options against 2.90 million shares.
  5. Citadel Advisors owns put options against 4.27 million shares and call options against 2.39 million shares.

On the date of publication, Eddie Pan did not hold (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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/5-big-investors-betting-against-sofi-stock/.

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