Sofi Financial Stock looks attractive here

Shares of the personal finance company Sofi Technologies (NASDAQ: SOFI) have been punished by the benchmark index sell-off, despite strong growth in the various segments. The popular provider of loans ranging from student, personal and home loans saw record growth in 2021 as it expanded its customer base to 3.5 million users, an increase of more than 80%. The company will take advantage of its projected seven rate hikes in 2022 to combat raging inflation. Further tailwinds from his banking charter should come for his top and bottom lines. Sofi acquires cloud core banking platform Technisys to vertically integrate its business segments and accelerate growth opportunities. Cautious investors seeking low-cost access to an emerging fintech player can look forward to opportunistic pullbacks in Sofi Technologies stocks.

Contributor of – MarketBeat

Q4 Fiscal 2021 Revenue Release

On March 1, 2022, Sofi announced its fiscal results for the fourth quarter of 2021 for the quarter ended December 2021. The company reported a diluted adjusted earnings per share (EPS) loss of (-$0.15), where consensus analyst estimates for a loss of (-$0.12) by (-$0.03). Total revenues increased 53.8% year over year to $279.88 million, versus $2279.47 million by consensus analysts. The company reached a record 523,000 new members per quarter, up 39% sequentially and 906,000 new products per quarter adding up 51% sequentially. Sofi CEO Anthony Noto commented: “We hit new highs in our key financial and operating metrics in the fourth quarter, closing 2021 with record year results. Adjusted net income of $280 million was another quarterly record for us, up 54% year-over-year and sequential even with the unexpected extension of the federal moratorium on student loan payments in late December. We crossed $1 billion in annual adjusted net income for the first time. We also delivered fourth quarter adjusted EBITDA of $5 million – our sixth consecutive positive quarter – resulting in positive adjusted EBITDA for the full year of $30 million. Best of all, in an increasingly challenging business environment, we were able to achieve both our adjusted revenue and adjusted EBITDA milestones ahead of schedule, while also significantly exceeding our member growth expectations.”

Guidance mixed income

Sofi gave downward earnings guidance for fiscal Q1 2022 with revenue expected between $280 million and $285 million versus $303.56 analyst estimates. The company raised its full-year 2022 fiscal outlook for $1.57 billion in revenue versus $1.45 billion by consensus analyst estimates

Takeaway for conference calls

CEO Noto continued to insist that Sofi reached new highs in key financial metrics, including a 54% year-over-year revenue growth. Growth continued across all three business segments, generating more than $1 billion in total annual revenue for 2021 and the sixth consecutive quarter of adjusted EBITDA. Sofi ended 2021 with 3.5 million members, an increase of 87% year-on-year. Its Galileo subsidiary grew 67% to 100 million. Personal loan production grew 168% year-on-year in the fourth quarter of 2021 thanks to improvements in technology, loan quality and credit models. The company grew home loan purchases from low single digits to low double digits relative to the total value of home loans. Sofi relaunched jumbo loans in the second half of 2021, boosting growth despite rising interest rates. Student loans grew 50% sequentially, reaching more than $1.5 billion before the federal student loan moratorium deadline in January. The company expects continued acceleration in loan growth, driven by opportunities it gained from 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 that offer members 1% APR and the SoFi Credit Card, which gives rewards for both purchases and smart financial behavior.

Sofi Financial Stock looks attractive here

SOFI Opportunistic Withdrawal Levels

Using the gun charts on the weekly and daily time frames provides an accurate picture of the price action playing field for SOFI stocks. The weekly gun chart peaked from the Fibonacci (fib) level of $24.68 before collapsing to the $7.52 fib. The weekly gun chart is trending down with a declining 5-period moving average (MA) at $9.90 followed by the 15-period MA at $12.42. The stochastics are compressed below the 10 band, indicating very oversold conditions. The weekly lower Bollinger Bands (BBs) are at $3.80. The 50-period weekly MA sits at $16.09. The daily gun chart’s downward trend is beginning to slow as the market structure low (MSL) triggers buy triggers above $8.76. The daily 5-period MA is leveling off at $8.43 while the 15-period MA closes the channel at $13.08. Everyday stochastics tries to cross the 10 band. The daily lower BBs are rising at $6.96. Cautious investors can watch for opportunistic pullbacks at the $8.00 level, $7.52 fib level, $6.66 level, $5.56 level and the $4.43 price level. Upward trajectories range from the $11.83 level to the $17.69 fib level.

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