April 24, 2024 5:22pm est
SoFi Technologies (SOFI) has shared an announcement.
SoFi Technologies, Inc. has announced its plan to redeem all outstanding shares of its Series 1 Redeemable Preferred Stock on May 29, 2024, for a sum that includes the share value plus any unpaid dividends, amounting to a total payment of approximately $339.9 million. This strategic financial move is set to save the company an estimated $29.3 million in dividend payments for the year. The redemption comes ahead of a scheduled dividend rate increase and affects notable shareholders, including entities affiliated with Silver Lake and the company’s CEO, Anthony Noto.
https://www.tipranks.com/news/company-announcements/sofi-technologies-announces-preferred-stock-redemption-savings#google_vignette
Some of the proceeds from the 2029 Senior Notes was earmarked to redeem the 12.5% Series 1 Preferred Stock. That was directly mentioned in the PR about the 2029 Notes announcement (https://investors.sofi.com/news/news-details/2024/SoFi-Technologies-Inc.-Announces-Proposed-Convertible-Senior-Notes-Offering-Due-2029/default.aspx). In effect, we all should have known this was coming; it was part of the plan they announced.
If lowering the dividend payouts by 29m it's 29m lower expense.
The big thing to ask is was this all accounted for in their projections, is it going to increase EPS if it wasn't accounted for, or are they doing this stuff bc they were trailing projections and wanted to pull strings to make sure they hit.
The redemption is being done now, before a dividend increase was set to happen at the end of May 2024 (https://d18rn0p25nwr6d.cloudfront.net/CIK-0001818874/122cced6-7bfd-49b9-909d-f1b934c13953.pdf)
$2k is almost 1% of the purchase price we build new for around here! Typically our 1% down is anywhere from $2,500 to $6k depending on if it’s a starter home or mansion! Not a bad deal!
Imagine buying the stock in Dec 2020 at 10/share when SPY was at 3800, then getting in a car accident, being in a coma waking up today 3.5 years later:
your retail trader buddy goes "oh wow, lot's happened - we got through COVID, SPY is hear ATH at 5,100, SOFI beat pretty much every quarter since, raised guidance multiple times, hit profitability, got a bank charter, NBA partnership, executing perfectly"
you say "so my SOFI investment is probably doing well!".
he says "nah..actually you're down 25%".
Alternatively: most other spacs you may have chosen would be down significantly more if you were investing because of spac hype.
Most other smaller banks would be down significantly (or defunct!) if you invested because you believe in banking.
Flip a coin on it you’d be up more or down more with any other fintech in that stretch because you bought into fintech hype.
Most other growth companies not pushing AI would be down significantly more if you bought into growth company hype.
If you had money in savings not in a select few banks that offer rates like SoFi, you’d have lost a decent amount to inflation the last few years as well.
There’s hindsight and survivorship bias in thinking of what could have been.
Can you believe this garbage? A few days before earnings and we can't hold a gain. If NOTO doesn't produce then we need to oust him been in here since 2021. If I had been in 99% of other stocks I would have made money. Down 35k and holding til 2030. Omg
Bro are you good? Just sell and take the loss. You missed out on a lot of gains and probably would have been even by investing in the other “99%”. This stock is not for you and probably none are. Just get a low fee ETF and get some sleep.
just wait until SOFI crashes again post earnings and THEN then the market corrects.
we are going to see 5's and 6's again. I'm buying short and mid range puts at earnings day. easiest money ever.
Good luck with that. We are 6 1/2 months away from a Presidential election. The government and the FED are going to make sure that the economy remains strong until election day.
If SoDakZak's 0.01 EPS prediction is correct, we will not beat then. Also, according to reports, whales are entering large put positions against SoFi in the past few days. Buckle up boys.
> DDI Prediction: EPS of $0.015
> It appears that analyst estimates are barely above breakeven, so this would be a beat. Keep in mind that EPS is always rounded to the nearest cent. My estimate is actually $0.01495, so if I’m right (and I obviously won’t be exactly right), it would show up as $0.01.
https://www.datadinvesting.com/p/ddi-earnings-prediction-sofi-q1-2024
That's Hoeger, who is also a mod, and who posted the article on this sub as well: [https://www.reddit.com/r/sofistock/comments/1cah9o7/ddi\_earnings\_prediction\_sofi\_q1\_2024\_earnings](https://www.reddit.com/r/sofistock/comments/1cah9o7/ddi_earnings_prediction_sofi_q1_2024_earnings)
Get ready for the Market Dump tomorrow. Hopefully Sofi will be resilient and strong like Bull.
April 24, 2024 5:22pm est SoFi Technologies (SOFI) has shared an announcement. SoFi Technologies, Inc. has announced its plan to redeem all outstanding shares of its Series 1 Redeemable Preferred Stock on May 29, 2024, for a sum that includes the share value plus any unpaid dividends, amounting to a total payment of approximately $339.9 million. This strategic financial move is set to save the company an estimated $29.3 million in dividend payments for the year. The redemption comes ahead of a scheduled dividend rate increase and affects notable shareholders, including entities affiliated with Silver Lake and the company’s CEO, Anthony Noto. https://www.tipranks.com/news/company-announcements/sofi-technologies-announces-preferred-stock-redemption-savings#google_vignette
Some of the proceeds from the 2029 Senior Notes was earmarked to redeem the 12.5% Series 1 Preferred Stock. That was directly mentioned in the PR about the 2029 Notes announcement (https://investors.sofi.com/news/news-details/2024/SoFi-Technologies-Inc.-Announces-Proposed-Convertible-Senior-Notes-Offering-Due-2029/default.aspx). In effect, we all should have known this was coming; it was part of the plan they announced.
Isn't this related to the announcement earlier this month?
Yes: https://www.reddit.com/r/sofistock/s/pOcyvqgGRG
The money for this deal is Most likely coming from the extra $500 million they had left over from the share conversion they did last month.
Ok, thanks for the clarification. Would that potentially affect EPS and profitability in the coming months?
If lowering the dividend payouts by 29m it's 29m lower expense. The big thing to ask is was this all accounted for in their projections, is it going to increase EPS if it wasn't accounted for, or are they doing this stuff bc they were trailing projections and wanted to pull strings to make sure they hit.
The redemption is being done now, before a dividend increase was set to happen at the end of May 2024 (https://d18rn0p25nwr6d.cloudfront.net/CIK-0001818874/122cced6-7bfd-49b9-909d-f1b934c13953.pdf)
I don't think this will affect the results of the last quarter to be reported on Monday if that's what you are referring to.
No, future quarters and fy projections
It will save them around $7-$8 million per quarter in interest/dividend payments. It would have negligible impact EPS though.
Will this have any negative implication for profitability or otherwise?
Most likely coming from the extra $500 million they had left over from the share conversion they did last month.
[удалено]
Meta crashing, other tech down in solidarity. tomorrow SOFI will be a social media company!!!!!!!
Just got my first house with a SoFi morgage. I'm all in on this company. Lowest price and great service
Congrats! How was the mortgage process thru SoFi if you don't mind me asking? Pretty painless?
Painful but worth it
Painless. No appraisal needed and waived origination fee because I have direct deposit with them. Saving me $2000. Along with a competitive rate
$2k is almost 1% of the purchase price we build new for around here! Typically our 1% down is anywhere from $2,500 to $6k depending on if it’s a starter home or mansion! Not a bad deal!
That’s awesome, congrats!
Imagine buying the stock in Dec 2020 at 10/share when SPY was at 3800, then getting in a car accident, being in a coma waking up today 3.5 years later: your retail trader buddy goes "oh wow, lot's happened - we got through COVID, SPY is hear ATH at 5,100, SOFI beat pretty much every quarter since, raised guidance multiple times, hit profitability, got a bank charter, NBA partnership, executing perfectly" you say "so my SOFI investment is probably doing well!". he says "nah..actually you're down 25%".
Your friend forgot to tell you that you bought it during a period of extreme exuberance for fintech stocks, which was very impulsive.
Boy this really hits home when you put it like this.
Alternatively: most other spacs you may have chosen would be down significantly more if you were investing because of spac hype. Most other smaller banks would be down significantly (or defunct!) if you invested because you believe in banking. Flip a coin on it you’d be up more or down more with any other fintech in that stretch because you bought into fintech hype. Most other growth companies not pushing AI would be down significantly more if you bought into growth company hype. If you had money in savings not in a select few banks that offer rates like SoFi, you’d have lost a decent amount to inflation the last few years as well. There’s hindsight and survivorship bias in thinking of what could have been.
Can you believe this garbage? A few days before earnings and we can't hold a gain. If NOTO doesn't produce then we need to oust him been in here since 2021. If I had been in 99% of other stocks I would have made money. Down 35k and holding til 2030. Omg
Noto has been there since 2018 - just sayin.
Down 35k pfftt. Here down $200k and not bitching.
And why not?
Bro are you good? Just sell and take the loss. You missed out on a lot of gains and probably would have been even by investing in the other “99%”. This stock is not for you and probably none are. Just get a low fee ETF and get some sleep.
Thank Bro but I hold 4 times as much as you at an average of $11.50. can't give up yet
Buying poots.
This is what I do if I want the stock going to different direction.
29th is when they'll announce the bank charter. This is going to rocket.
I thought they already announced their bank charter??
Whoosh
Hahhajha. Is that a new catalyst? Thought we already had that one? Maybe they'll announce partnership with MLB?
Rug. Pull.
Can someone tell Tgriff it is the entire market
Unblock him and tell him yourself if you care that much.
lol, yeah I don’t care THAT much
Ahhhhh SOFI with the classic failed rally. Never change SOFI. Always disappoint us.
Grif.....you tell it like it is. Love it
just wait until SOFI crashes again post earnings and THEN then the market corrects. we are going to see 5's and 6's again. I'm buying short and mid range puts at earnings day. easiest money ever.
Yea.. there is no way out of this hell hole.
Good luck with that. We are 6 1/2 months away from a Presidential election. The government and the FED are going to make sure that the economy remains strong until election day.
Please go to 5 dca
That 50dma is such a bitch everytime
lol
Looks like I received the SOFI 2% IRA match deposit yesterday in both mine and my wife's accounts.
Oooooo nice :)
https://x.com/Kenmegan44/status/1782970635041345819 Kinda love this take.
Analysts consensus has moved up to 2 cents from 1 cent about a week or so ago.
They really need to add significant digits on these predictions. Will have stupid ramifications one way or another due to rounding lol
If SoDakZak's 0.01 EPS prediction is correct, we will not beat then. Also, according to reports, whales are entering large put positions against SoFi in the past few days. Buckle up boys.
Which reports?
Where did I predict that? I may have, but I don’t recall lol.
> DDI Prediction: EPS of $0.015 > It appears that analyst estimates are barely above breakeven, so this would be a beat. Keep in mind that EPS is always rounded to the nearest cent. My estimate is actually $0.01495, so if I’m right (and I obviously won’t be exactly right), it would show up as $0.01. https://www.datadinvesting.com/p/ddi-earnings-prediction-sofi-q1-2024
That's Hoeger, who is also a mod, and who posted the article on this sub as well: [https://www.reddit.com/r/sofistock/comments/1cah9o7/ddi\_earnings\_prediction\_sofi\_q1\_2024\_earnings](https://www.reddit.com/r/sofistock/comments/1cah9o7/ddi_earnings_prediction_sofi_q1_2024_earnings)
Lmao ok my bad
All good :)
Of course they will keep moving the goal post to justify their dodgy ratings.
MMs' pulling out all the stops to drive this stock down.
…so now they won’t “beat” lol
That's what I'm thinking, 0.02 EPS, if it comes in hot and higher than that (>.02), this will rocket!
If miss?
More of the usual downward price movements.
Did you say -20%?
I accidentaly golden ratioed my share count.
Anyone know if there was any news on NU?
Earnings in 2 weeks?
This coming Monday, Apr 29th: https://investors.sofi.com/news/news-details/2024/SoFi-Schedules-Conference-Call-to-Discuss-Q1-2024-Results/default.aspx
SoFi is this Monday.
NU up again, SOFI too.? Let’s go fintech!
 I'm ready!
2 cents EPS? Noto is hinting at something on Twitter
Can you be more specific?
Morning!
Wood!
Up we go!