5 Investors Betting Big on SOFI Stock in 2023

  • SoFi (SOFI) reported record net revenue of $457 million during the fourth quarter.
  • Vanguard is the largest shareholder of the company with a 66.8 million share stake.
  • Shares of SOFI stock are up by more than 10% today.
SOFI stock - 5 Investors Betting Big on SOFI Stock in 2023

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Shares of SoFi (NASDAQ:SOFI) stock opened in the green after the fintech company reported its fourth-quarter earnings. Net revenue tallied in at a record $457 million, up 60% year over year (YOY). That was driven by nearly 480,000 new quarterly member adds and more than 695,000 new product adds. Total members surpassed 5.2 million, up 51% YOY, while total products were up 53% YOY to almost 7.9 million.

Meanwhile, total deposits were up by 46% quarter over quarter to $7.3 billion. Additionally, 88% of deposits were attributed to direct deposit members. As a result of these “high quality deposits,” SoFi is now able to hand out loans at a lower cost.

CEO Anthony Noto also signaled for net income profitability during Q4. “Our continued strong growth and significant improvement in GAAP net income margin position us very well in 2023 for another year of significant revenue and EBITDA growth and for reaching GAAP net income profitability in the fourth quarter,” said the CEO.

For guidance, the company expects between $430 million to $440 million of adjusted net revenue for Q1, up 35.5% YOY at the midpoint. Adjusted earnings before interest, taxes, deductions and amortizations (EBITDA) for the quarter is forecasted to be between $40 million and $45 million. For full-year 2023, SoFi expects revenue to be between $1.925 billion and $2 billion, up 27.5% YOY at the midpoint.

5 Investors Betting Big on SOFI Stock

Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 472 13F filers reported owning SOFI, an increase of 23 filers from the prior quarter. Meanwhile, the institutional put/call ratio sits at 1.28, down from 1.79. That’s equivalent to 50.16 million puts and 39.34 million calls, implying a bearish options stance. With that in mind, let’s take a look at the top five shareholders of SoFi:

  1. Vanguard: 66.8 million shares. Vanguard purchased 4.84 million shares during Q3.
  2. BlackRock (NYSE:BLK): 31.67 million shares. BlackRock purchased 826,805 shares during Q3.
  3. Silver Lake Group: 31.15 million shares. Silver Lake’s position remained unchanged during Q3.
  4. State Street (NYSE:STT): 11.73 million shares. State Street purchased 48,717 shares during Q3.
  5. Geode Capital Management: 10.97 million shares. Geode purchased 706,124 shares during Q3.

Please note that this list only includes investors who filed a Q3 position update. For example, Red Crow Capital owns 42.64 million shares, although that figure is only accurate as of Q4 of 2021.

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/2023/01/5-investors-betting-big-on-sofi-stock-in-2023/.

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