Sofi Financial shares look attractive here

personal finance company Sofi Technologies (NASDAQ:) The stock was punished by the benchmark despite strong growth in its various segments.

The popular student, personal and home loan provider saw record growth in 2021 by growing its customer base to 3.5 million users, up more than 80%. The Company will benefit from the in 2022 to fight galloping inflation. Further tailwinds from its banking charter should materialize for its top and bottom results.

Sofi acquires cloud-based core banking platform Technisys to help vertically integrate its business segments and accelerate growth opportunities. Cautious investors looking to get into a rising fintech player can watch for opportunistic pullbacks in SoFi Technologies shares.

Publication of results for the fourth quarter of fiscal 2021

On March 1, 2022, SoFi released its fiscal fourth quarter 2021 results for the quarter ending December 2021. The company reported a diluted adjusted earnings per share (EPS) loss of (-$0.15) consensus estimates missing from analysts for a loss of (-$0.12) by (-$0.03). The total rose 53.8% year-on-year to $279.88 million from $2,279.47 million according to consensus analyst estimates.

The company hit a record 523,000 new quarterly members, up 39% sequentially and 906,000 new quarterly products, up 51% sequentially. Sofi CEO Anthony Noto commented:

“We hit new highs for our key financial and operating metrics in the fourth quarter, ending 2021 with record full-year results. Adjusted net revenue of $280 million was another quarterly record for us, up from 54% year-over-year and sequentially, even with the unexpected extension of the federal student loan repayment moratorium at the end of December, we exceeded $1 billion in annual adjusted net revenue for the first time.

“We also achieved adjusted EBITDA of $5 million in the fourth quarter – our sixth consecutive positive quarter – resulting in positive adjusted EBITDA of $30 million for the full year. The best part is that we have been able to achieve both our adjusted revenue and our foreground adjusted EBITDA milestones in an increasingly challenging operating environment, while significantly exceeding our membership growth guidance.”

Advice on mixed income

SoFi issued a lower earnings forecast for the first quarter of fiscal 2022 with revenue expected between $280 million and $285 million from analysts’ estimates of $303.56. The company raised its fiscal 2022 guidance for revenue to $1.57 billion from $1.45 billion according to consensus analyst estimates.

Takeaways from the conference call

CEO Noto continued to hammer home the point of SoFi reaching new heights across key financial metrics, including 54% year-over-year revenue growth. Growth continued across its three business segments, generating more than $1 billion in total annual sales for 2021 and a sixth consecutive quarter of adjusted EBITDA. SoFi ended 2021 with 3.5 million total members, up 87% year-over-year. Its subsidiary Galileo increased its account by 67% to 100 million. Personal loans grew 168% year-on-year in Q4 2021, driven by improvements in its technology, loan quality and credit models.

The company has moved home loans purchased from low single digits to low double digits relative to percentages of total home loan value. SoFi relaunched jumbo lending in the second half of 2021, helping to drive growth despite rising rates. Student loans rose 50% sequentially, generating more than $1.5 billion ahead of the January federal student loan moratorium deadline.

The company expects continued acceleration in loan growth, driven by opportunities presented to it by the new banking license it acquired in 2021. The company added 2.5 million new financial services products in 2021 and launched services such as SoFi Money, SoFi Checking and Savings offering members 1% APR and the SoFi Credit Card, which offers rewards for smart shopping and financial behavior.

SoFi Technologies Stock Chart

SOFI Opportunistic Withdrawal Levels

Using rifle charts on the weekly and daily time frames provides an accurate view of the price action playing field for SOFI stocks. The rifle’s weekly chart peaked at the $24.68 Fibonacci (fib) level before slumping towards the $7.52 fib thereafter. The Rifle’s weekly chart is trending lower with a 5-period moving average (MA) down at $9.90 followed by the 15-period MA at $12.42.

The stochastic is compressed below the 10 band indicating very oversold conditions. The lower weekly Bollinger® Bands (BB) lie at $3.80. The weekly 50-period MA is $16.09. The Rifle chart’s daily downtrend begins to slow as the buy of the Market Structure Low (MSL) triggers above $8.76. The daily 5-period MA flattens at $8.43 while the 15-period MA closes the channel at $13.08. The daily Stochastic is trying to break above the 10 band. The daily BB lower is wrapping at $6.96.

Cautious investors can watch for opportunistic pullbacks at the $8.00 level, the $7.52 fib level, the $6.66 level, the $5.56 level and the 4.43 price level $. The upward trajectories are from the $11.83 level to the $17.69 fib level.

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