The stock of SoFi Technologies (SOFI) closed 5% higher on November 5, putting the share price of the financial technology company on the cusp of a new 52-week high.
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The rise in SOFI stock comes amid a broader rally in the market, with all three major U.S. indices rising by more than 1%. The technology-laden Nasdaq stock index (NDX) gained the most on the day, climbing 1.43% higher, or 259 points.
SoFi’s stock has now increased nearly 10% in the last five trading sessions. At its current share price of $11.42, the stock is close to surpassing its 52-week high of $11.55. Shares of the online lender that specializes in student and home loans have now gained 77% in the past three months.
Lower Interest Rates
SOFI stock is trending higher after the company issued third-quarter financial results that topped Wall Street forecasts and lifted its forward guidance. The company’s total membership grew 35% year-over-year during Q3, reaching nearly 9.4 million.
At the same time, SOFI stock is also benefitting as interest rates move lower. A reduction in rates is expected to spur demand for the mortgages, car loans, and credit cards that the online lender provides. The 5% gain in SOFI stock comes two days before the U.S. Federal Reserve is widely expected to lower interest rates a further 25 basis points on November 7.
Is SOFI Stock a Buy?
The stock of SoFi Technologies has a consensus Hold rating among 13 Wall Street analysts. That rating is based on four Buy, six Hold, and three Sell recommendations issued in the last three months. The average SOFI price target of $8.63 implies 24.43% downside risk from current levels.
