The Financial Stock Big Money Managers Are Quietly Buying

Core Viewpoint - SoFi Technologies has experienced a significant increase in institutional investment despite recent stock price volatility, indicating a potential long-term growth story for the company [1][5]. Group 1: Stock Performance - SoFi's shares surged from under $10 to over $30 during mid- to late 2025, driven by strong quarterly results, but have recently entered a downward trend [1][2]. - The stock has been range-bound from September through January before starting to pull back [2]. Group 2: Institutional Investment - Major asset managers have significantly increased their positions in SoFi, with J.P. Morgan Chase raising its stake by 18 million shares to approximately 65 million shares, representing 5.4% of shares outstanding [3]. - BlackRock also increased its holdings by around 13.5 million shares, controlling about 5.2% of SoFi's outstanding stock [4]. - Other Wall Street trading firms, including Susquehanna, Citadel, and Jane Street, have also raised their net positions by 10.6 million, 8.6 million, and 7.9 million shares, respectively [4]. Group 3: Growth Outlook - SoFi is expected to continue growing its user base in loans, banking, and financial services, leading to mid-double-digit earnings growth [5][6]. - The company's forward price-to-earnings ratio stands at 38.6, suggesting that the stock could maintain its value as earnings increase [6].