The FX PostThe FX Post
    What's Hot

    Govt enacts law to regulate VAs, plans pilot for digital currency – Daily Times

    July 10, 2025

    Funeral home owner accused of stashing decaying bodies expected to plead guilty in federal court

    July 9, 2025

    Has the Airbnb bubble burst?

    July 8, 2025
    The FX Post The FX Post
    • Best Fx Robots
    • Forex
      • News
      • Forex 101
      • Forex Forecasts
      • Broker Reviews
    • Crypto
      • News
      • Crypto 101
      • Crypto Forecasts
      • Crypto Reviews
    • Indices
      • News
      • Analysis
      • Commodities
      • Reviews
    • Automated Trading
      • Forex Signals
      • Forex Robots
      • Copy Trading
    • Top
      • Best Forex Robots
    The FX PostThe FX Post
    Home ยป SoFi Capital Raise Turmoil
    News

    SoFi Capital Raise Turmoil

    March 6, 20242 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit
    Share
    Facebook Twitter LinkedIn Pinterest Reddit

    SoFi Technologies recently made headlines as plans to raise capital sent the fintech stock spiraling to its worst day on record, sparking mixed reactions on Wall Street.

    Capital Raise Details

    On Tuesday, SoFi announced its intentions to offer $750 million of convertible notes due in 2029. Additionally, the company stated that it would grant the initial purchasers the option to buy an additional $112.5 million in notes within 13 days of the initial issue date.

    Investor Concerns

    Investors voiced their concerns over capital raises, fearing potential dilution. As a result, SoFi’s stock experienced a significant 15% drop on Tuesday, marking its most substantial one-day decline ever, according to Dow Jones Market Data.

    Analyst Insights

    J.P. Morgan analysts, who rate SoFi at Neutral, found the capital raise somewhat surprising. They highlighted the company’s healthy capital ratios, positive reputation with regulators, and low loan-loss rates but questioned the timing of the transactions.

    Similarly, Wedbush analysts expressed a cautious stance in their Tuesday report, aligning with J.P. Morgan’s sentiments about SoFi’s recent capital decisions.

    SoFi Shifts Focus to Providing Capital Relief

    Analysts have noted a significant shift in SoFi’s approach over the past six months, moving away from aggressive capital deployment to strategies aimed at providing capital relief and building. Despite this change, some analysts remain cautious about the company’s performance.

    Oppenheimer Analysts Find Silver Lining

    Although Wedbush rates SoFi stock at Underperform with a price target of $3, Oppenheimer analysts, who rate the shares at Perform, highlighted a few reasons for optimism. They pointed out that SoFi recently replaced 2026 convertible notes with 2029 notes at a cost of 1.25% and paid down 12.5% of preferred stock. This move was seen as a positive one considering the rise in interest rates since the original debt issuance.

    Sofi’s Promising Opportunity

    Despite concerns about potential debt-to-equity exchanges that could dilute shareholders, Oppenheimer analysts believe there is an opportunity brewing for investors as the stock trades around $7. The recent pressure on SoFi’s stock was attributed to convertible arbitragers selling short in anticipation of the purchase of SoFi’s convertible deal.

    Market Response and Outlook

    On Wednesday, SoFi stock saw a 1.8% increase to $7.40, while the S&P 500 rose by 0.8%. The market response reflects a mix of cautious optimism and uncertainty about SoFi’s future moves.

    Markets are invaded by algorithms
    Secure your passive income with algo-based trading systems
    Learn more
    analyst insights capital raise Investor Concerns market turmoil SoFi
    Share. Facebook Twitter Pinterest LinkedIn Reddit

    Related Posts

    Govt enacts law to regulate VAs, plans pilot for digital currency – Daily Times

    July 10, 2025

    Funeral home owner accused of stashing decaying bodies expected to plead guilty in federal court

    July 9, 2025

    Has the Airbnb bubble burst?

    July 8, 2025

    Tinubu has changed narrative of NDDC, says Ogbuku, MD

    July 7, 2025
    Add A Comment

    Leave A Reply Cancel Reply

      +  12  =  18

    Best FX Post
    Best Forex Robots (Expert Advisors) 2021

    Best Forex Robots (Expert Advisors) 2022: Passive Income From Algo Trading Systems

    July 7, 2021

    Top 10 Lending Platforms for Crypto Loans

    June 1, 2022
    forex eurusd trading charts

    Top 10 Best Forex Brokers In All Times

    June 1, 2022
    Recent Posts
    • Govt enacts law to regulate VAs, plans pilot for digital currency – Daily Times
    • Funeral home owner accused of stashing decaying bodies expected to plead guilty in federal court
    • Has the Airbnb bubble burst?
    • Tinubu has changed narrative of NDDC, says Ogbuku, MD
    • What happens if $FUN hits $0.10? Price scenarios, holder behaviour, and post-breakout plans
    Featured Reviews

    Traders Connect Review

    May 18, 2023

    System Levels Review

    May 26, 2023
    TechBerry

    TechBerry Review: Pros, Cons, Recommendations

    September 18, 2021
    Categories
    • Analysis
    • Automated Trading
    • Best FX Post
    • Broker Reviews
    • Commodities
    • Copy Trading
    • Crypto
    • Crypto 101
    • Crypto Bots
    • Crypto Forecasts
    • Crypto Reviews
    • Crypto Robot
    • Forex
    • Forex 101
    • Forex Forecasts
    • Forex Robots
    • Forex Signals
    • Forex Signals
    • Guides
    • Indices
    • News
    • News
    • News
    • News
    • Reviews
    • Reviews
    • Uncategorized
    Twitter BlogLovin
    © 2025, Thefxpost.com.
    • Contact

    Type above and press Enter to search. Press Esc to cancel.