KBW downgraded SOFI to "underperform" from "market perform"
SoFi Technologies Inc (NASDAQ:SOFI) stock is plummeting today, down 13.1% at $8.39 at last glance, after a downgrade from Keefe, Bruyette & Woods (KBW) to "underperform" from "market perform," with a price-target cut to $6.50 from $7.50. The majority of analysts lean bearish on the equity, with only six of the 19 in coverage carrying a "buy" rating.
Today's drop has SOFI back below familiar pressure at the $9 level, as well as recent support at its 20-day moving average. In the last year, the equity is still up 87.9%.
Options traders are chiming in on the dip, with 164,000 calls and 198,000 puts exchanged so far, which is triple the amount typically seen at this point. The January 8 put is the most popular, with new positions opening there.
Meanwhile, though short interest has been unwinding -- down 10% in the last two weeks -- it still represents 14.5% of the stock's available float. It would take shorts over three days to cover their bets, at SOFI's average pace of trading.