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SoFi Faces Challenges: Target Price Lowered and Director Sells Shares

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Ellis Hobbs Fact-checked by Matt Monaco
Updated 2/11/2026, 2:33 pm ET 2/11/2026, 2:33 pm ET | 5 min 5 min read
SoFi Faces Challenges: Target Price Lowered and Director Sells Shares Thumbnail

On Tuesday, SoFi Technologies Inc.’s stocks have been trading down by -3.02 percent amid heightened economic growth and market jitters.

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Live Update At 14:32:16 EST: On Wednesday, February 11, 2026 SoFi Technologies Inc. stock [NASDAQ: SOFI] is trending down by -3.02%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In recent months, SoFi Technologies has been on a rollercoaster ride on Wall Street. Despite reaching a peak of $25.47 in late January, recent sessions show slipping figures, with the stock closing at about $20.54 on Feb 11, 2026. This fluctuation demonstrates the high volatility that investors in tech-focused firms like SoFi need to navigate regularly.

Examining SoFi’s financial health provides a glimpse into the company’s growing pains. While revenue has surged with a growth rate of 33.2% over three years, profitability remains elusive for SoFi with negative EBIT and pretax profit margins. Their debt-to-equity ratio stands at a cautious 0.32, indicative of moderate leverage, while returns on assets and equity demonstrate the challenge SoFi faces in translating growth into tangible profits.

Financials reveal a staggering total revenue of over $2.6B, with revenue per share at $2.07. However, with a PE ratio of 38.12, there’s pressure on SoFi to justify such high valuations in the face of continuous market skepticism. Their aggressive growth strategy, evidenced by a high price-to-book ratio of 3.06, reflects the company’s ambition but also brings inherent risks given market comparatives.

Market Reactions

The market’s reaction to Bank of America’s downgrade of SoFi’s price target is expected. Investors may be questioning the sustainability of SoFi’s valuation, which is deemed ‘stretched relative to peers’ by BofA analysts. The lower price target suggests that the bank sees limited upside potential in the short term for SoFi’s stock, which could dissuade new investors or prompt current shareholders to reassess their stakes.

More Breaking News

Meanwhile, the sizable share divestment by SoFi’s Director Steven Freiberg may instigate concern among investors. Instances of insiders selling substantial blocks of shares often trigger anxiety in the market, indicating possible internal forecasts of future difficulties or weaker performance. However, Freiberg’s remaining significant holdings could also signal confidence in the company’s long-term trajectory.

Competitive Pressures Mount

SoFi Technologies stands at a crossroads, attempting to leverage its fintech abilities to capture more market share amid fierce competition. Its balance sheet reflects strong asset turnover but reveals an urgent need to streamline operations and bolster financial robustness. The complexity of its cash flows, with hefty negative free cash flows for the reported period, underscores the push-pull dynamics of aggressive investment against immediate profitability.

Besides, recent earnings data paint a complex picture. SoFi showcases impressive gains in interest income but suffers due to the costs tied to high operational expenditures. Despite a robust total revenue exceeding $961.6M for the current quarter, operations are yet to deliver consistent profitability, leaving stakeholders to question how soon SoFi will turn the corner.

Conclusion

In conclusion, SoFi Technologies is grappling with significant challenges on multiple fronts. While growth remains commendable, aided by substantial top-line figures, the path to profitability and shareholder satisfaction appears fraught with obstacles. The adjusted price target from BofA suggests a more grounded near-term outlook, while insider stock transactions add another layer of complexity to the narrative.

Traders should remain vigilant, weighing ambitious expansion against the inherent risks highlighted by recent financial markers. As millionaire penny stock trader and teacher Tim Sykes says, “Small gains add up over time; focus on building wealth gradually, not chasing jackpots.” This ideology serves as a crucial reminder for those with stock ventures into SoFi to temper potential gains with a sound understanding of market dynamics and capital flows. The roller coaster that is SoFi Technologies continues to call for a cautious yet optimistic approach, hoping that upcoming quarters bring a perfect mix of strategy execution and fiscal prudence.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”