SOFI stock rose 17% in after-hours trading on January 18, 2022, after the company announced it received regulatory approval to become a national bank.
SoFi Receives Regulatory Approval to Become a National Bank
On January 18, 2022, SoFi Technologies the digital personal finance company, announced that the Office of the Comptroller of the Currency (OCC) and the Federal Reserve have approved its applications to become a Bank Holding Company through its proposed acquisition of Golden Pacific Bancorp, Inc., and operate its bank subsidiary as SoFi Bank, National Association. SoFi expects the acquisition to close in February, subject to completion or waiver of the remaining customary closing conditions.
“This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” said Anthony Noto, CEO of SoFi. “With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with a high-yielding interest in checking and savings, but it will also enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners, and communities across the country while continuing to uphold a high bar of regulatory standards and compliance. This important step allows us to add to our broad suite of financial products and services to better be there for our members during the major financial moments in their lives and all of the moments in between. I’m incredibly proud of our team and excited about the opportunities ahead to help even more people achieve financial independence.”
Last year, in a key strategic step in SoFi’s path to obtaining a national bank charter, the company announced a definitive agreement by its subsidiary Social Finance, Inc. to acquire Golden Pacific Bancorp, Inc. (OTCPK: GPBI) and its wholly-owned subsidiary Golden Pacific Bank, N.A. (together, “GPB”). SoFi plans to contribute $750 million in capital and pursue its national, digital business plan while maintaining GPB’s community bank business and footprint, including GPB’s current three physical branches. At the time of the announcement, SoFi submitted a revised business plan for GPB to the OCC and an application to become a bank holding company and for a change of control to the Federal Reserve for approval. After completing the acquisition of GPB, SoFi Technologies, Inc. (NASDAQ: SoFi) will become the parent company of SoFi Bank, National Association.
SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing and protecting give our nearly three million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. SoFi is also the naming rights partner of SoFi Stadium, home of the Los Angeles Chargers and the Los Angeles Rams.
Wedbush starts SoFi at Outperform on ‘strong’ growth outlook
Wedbush analyst David Chiaverini initiated coverage of SoFi Technologies with an Outperform rating and $20 price target. The analyst said the Outperform rating is based on the company’s “strong” growth outlook with a five-year revenue CAGR of 28% through 2026 as well as an increasing brand presence that should drive member growth. Chiaverini added the company’s integrated technology platform is a competitive advantage that allows for a seamless cross-buying experience aimed at a digitally native younger cohort.
SoFi Technologies initiated with a Neutral at Goldman Sachs
Goldman Sachs analyst Michael Ng initiated coverage of SoFi Technologies with a Neutral rating and $16 price target. SoFi is a financial services platform that primarily operates in the U.S. that allows its retail customers to borrow, save, and spend through loan products and financial services, Ng tells investors in a research note. The analyst believes the company’s lending should realize a growing loan book driven by the end of the student loan moratorium, share gains in personal loans, and expansion into house mortgages. However, he views SoFi’s growth opportunity as largely reflected in current valuations.
📺 Major News For SOFI Stock That Has It Skyrocketing 18% in After Hours!!
📈 SOFI Stock Technical Analysis
Both the long and short-term trends are negative. It is usually better to avoid buying stocks with negative trends; however, becoming a national bank could be a strong catalyst for a reversal. SOFI is currently making a new 52 week low. This is a very bad signal. The S&P500 Index is trading in the upper part of its 52-week range, so SOFI is lagging the market.
There is a resistance zone ranging from 13.62 to 13.63. There is also a resistance zone ranging from 15.16 to 15.35. Both these zones were formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also resistance at 23.04 from a horizontal line in the daily time frame.
The technical rating of SOFI is bad and it also does not present a quality setup at the moment. SOFI stock currently has a Setup Rating of 2 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when SOFI stock consolidates and has a Setup Rating of 8 or better.