SoFi Technologies (NASDAQ:SOFI) stock is on the move Monday after the financial company’s stock was hit with a downgrade from Wedbush.
Wedbush analysts dropped SOFI stock from its prior “neutral” rating and gave it a new “underperform” rating. For the record, the analysts’ consensus rating for SOFI shares is “hold.” That is based on 12 analysts’ opinions.
To go along with that downgrade, analysts at Wedbush also dropped their price target for SOFI stock from $5 per share to $2.50 per share. That represents a potential downside of 50.2%. It’s also well below the analysts’ consensus price target of $7.23 per share.
What’s Behind the Bearish SOFI Stock Rating?
Wedbush analysts have raised a few concerns about the online personal finance company in a note to clients. Among them are its fee income and the possibility that the company may have to raise additional funds this year. Without more funds, SOFI may not be able to experience the growth it wants.
Investors aren’t reacting well to this news with heavy trading dragging SOFI stock lower. As of this writing, more than 36 million shares of the stock have changed hands. That’s already above the company’s daily average trading volume of about 35 million shares.
SOFI stock is down 10% as of Monday morning, which wipes out the gains the company has seen since the start of the year.
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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.
