SoFi (SOFI) Stock Is Up, What You Need To Know

Shares of digital financial services company SoFi Technologies (NASDAQ:SOFI) jumped 2.8% in the morning session after Mizuho raised its price target on the stock from $26.00 to $31.00 while reiterating its ‘outperform’ rating.

This vote of confidence from the investment bank signaled a bullish outlook on the financial technology company’s future. The move came as the stock was already showing strong momentum, having reached a new 52-week high. Mizuho’s new target suggested growing conviction in SoFi’s market potential and strategic direction. Investors reacted with enthusiasm, driving trading volume up significantly by 16% compared to its average, which showed a surge in market interest.

After the initial pop the shares cooled down to $29.21, up 4% from previous close.

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SoFi’s shares are extremely volatile and have had 39 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 1.2% on the news that the stock pulled back following a recent rally.

The decline followed a strong performance the previous day, where the stock reached a new 52-week high. It is common for stocks to experience a temporary retreat as some investors decide to lock in profits after a significant upward move. With no other major company-specific news driving the stock, the current price action seems to be a result of technical trading dynamics rather than a change in the company’s fundamental outlook.

SoFi is up 107% since the beginning of the year, and at $29.21 per share, has set a new 52-week high. Investors who bought $1,000 worth of SoFi’s shares at the IPO in November 2020 would now be looking at an investment worth $2,786.

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