SoFi Stock Pops on $525 Million Personal Loan Deal. It Shows 'Continued Demand.' -- Barrons.com

Dow Jones01-17

By Emily Dattilo

Shares of SoFi Technologies rose after the fintech announced a sizable personal loan deal.

SoFi stock gained 4.2% to $16.16 in afternoon trading, while the S&P 500 was up 0.1%. Over the last 12 months, SoFi shares have soared more than 100%.

The company announced a $525 million personal loan securitization agreement closed in the fourth quarter of 2024 with funds and accounts managed by PGIM Fixed Income.

"The transaction follows a $350 million investment from PGIM in May 2024," SoFi said in a press release. "It builds on the $3.9 billion in personal loan collateral SoFi sold or securitized to-date through the end of Q3 2024, illustrating the value of the company's leading personal loan business."

Keefe, Bruyette & Woods analysts Timothy Switzer and Emily Lee, who rate SoFi at Underperform with a price target of $8, weighed in on the news.

"We view the securitization positively as it indicates continued demand for SOFI's paper and capital market conditions trending well," the analysts wrote. "That said, we note that the $525M amount is relatively small compared to the bank's $25.2B fair value loan portfolio ($17.2B of personal loans), and the recent surge in interest rates may limit continued improvement in the capital markets over the near term."

Write to Emily Dattilo at emily.dattilo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

January 16, 2025 12:36 ET (17:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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Over the last 12 months, SoFi shares have soared more than 100%. \n\n\n     The company announced a $525 million personal loan securitization agreement closed in the fourth quarter of 2024 with funds and accounts managed by PGIM Fixed Income. \n\n\n     \"The transaction follows a  $350 million investment from PGIM in May 2024,\" SoFi said in a press release. \"It builds on the $3.9 billion in personal loan collateral SoFi sold or securitized to-date through the end of Q3 2024, illustrating the value of the company's leading personal loan business.\" \n\n\n     Keefe, Bruyette & Woods analysts Timothy Switzer and Emily Lee, who rate SoFi at Underperform with a price target of $8, weighed in on the news. \n\n\n     \"We view the securitization positively as it indicates continued demand for SOFI's paper and capital market conditions trending well,\" the analysts wrote. \"That said, we note that the $525M amount is relatively small compared to the bank's $25.2B fair value loan portfolio ($17.2B of personal loans), and the recent surge in interest rates may limit continued improvement in the capital markets over the near term.\" \n\n\n     Write to Emily Dattilo at emily.dattilo@dowjones.com \n\n\n     This content was created by Barron's, which is operated by Dow Jones & Co. 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