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SoFi Stock Down as End of Lockup Period Approaches

A lockup period ends early next week for some SoFi holders. Rosenblatt Securities sees short-term trouble ahead for the stock but remains a buyer.
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SoFi Technologies  (SOFI) - Get SOFI TECHNOLOGIES INC Report Friday sustained its loss from late Thursday as a lockup period for some holders of the online personal-finance-services provider is about to end and Rosenblatt Securities sees short-term trouble ahead for the stock..

The holders will be able to start selling shares early next week, said Rosenblatt analyst Sean Horgan, Bloomberg reports. The San Francisco company went public in June.

SoFi stock recently traded at $15.50, down 11% and little changed from after-hours trading Thursday. The online personal finance company fell after it reported a loss for the second quarter, even as revenue doubled.

SoFi registered a net loss of $165.3 million, or 48 cents a share, swinging from profit of $7.8 million, or a per-share loss of 3 cents, in the year-earlier quarter. 

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Revenue reached $231.2 million in the latest quarter from $115 million a year earlier.

Still, Horgan affirmed his buy rating and $30 price target. “We caution investors that we expect volatility in the short term, but we remain buyers here ahead of material catalyst,” he said.

Morningstar analyst Michael Miller puts fair value for SoFi at $20.50.

“Some investors may come away from the quarter disappointed, as top-line growth was more modest than the impressive second-quarter results reported by some of SoFi’s fintech peers, particularly those with heavy exposure to personal loans,” he wrote in a commentary Thursday.

“Despite this, a deeper look into the quarter reveals some key elements of strength as well as continued progress toward SoFi’s long-term goals. In general we view the results positively. We intend to maintain our $20.50 fair value estimate.”