SoFi Technologies (NASDAQ:SOFI) stock soared higher by about 20% after the personal finance company reported its second-quarter earnings on July 31. However, SOFI stock has lost all of its earnings gains since then.
During the quarter, SoFi posted record revenue of $498 million, up by 37% year-over-year (YOY). Adjusted EBITDA was also a record high of $77 million, up by a staggering 248% YOY.
“We also generated our fourth consecutive quarter of record adjusted EBITDA of $77 million, representing a 43% incremental adjusted EBITDA margin and a 16% margin overall, as well as a 36% incremental GAAP net income margin,” said CEO Anthony Noto.
SoFi also reported new members adds of more than 584,000, totaling over 6.2 million members as of June 30, which was up by 44% YOY. These numbers are impressive, although the recent decline in price has invoked speculation regarding what SOFI should be valued at. SoFi strives to be a “neobank,” but some argue that it should be valued as a traditional bank.
SOFI stock currently trades at a price-to-sales ratio of about 4.19x, while traditional banks like Bank of America (NYSE:BAC) and J.P. Morgan (NYSE:JPM) trade at 2.42x and 3.10x, respectively. The counterargument here is that SoFi is growing much faster than traditional banks.
On top of that, SoFi still remains unprofitable, reporting a Q2 net loss of $47.54 million and a loss per share attributable to shareholders of 6 cents.
5 Investors Betting Big on SOFI Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q2, 486 13F filers disclosed a stake in SOFI stock, a decline of 19 filers from the prior quarter. Of those filers, seven of them own SOFI in their top 10 positions, a sequential increase of one filer. In total, these filers own 350.14 million shares of the company, up by an impressive 13.63% from 308.15 million shares.
Meanwhile, SoFi’s institutional put/call ratio as of Q2 was 1.17, down from 1.45. That’s equivalent to 66.49 million puts and 56.99 million calls, implying a bearish options stance. With that in mind, let’s take a look at SoFi’s largest shareholders as of the second quarter:
- Vanguard: 73.83 million shares. Vanguard acquired 4.26 million shares during Q2.
- BlackRock (NYSE:BLK): 38.12 million shares. BlackRock acquired 2.30 million shares during Q2.
- Silver Lake Group: 31.15 million shares. Silver Lake’s stake remained unchanged during Q2.
- D.E Shaw & Company: 15.53 million shares. D.E. Shaw acquired 11.59 million shares during Q2.
- State Street (NYSE:STT): 13.68 million shares. State Street acquired 1.56 million share during Q2.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
