- SoFi stock rallies sharply in the premarket on bank license approval.
- SOFI shares trading at $14.10 in premarket after Tuesday close of $12.06.
- SoFi to acquire Golden Pacific Bancorp, closing expected February.
SoFi (SOFI) shares are rallying sharply in the premarket as the company has gotten approval to operate as a fully fledged bank. The shares are currently up nearly 17% at the time of writing, trading at $14.10.
SoFi Stock News
SoFi went public last year through a SPAC deal with former Facebook executive Chamath Palihapitiya vehicle Social Capital Hedesophia Holdings V. SPAC stocks were one of the hot retail sectors last year and many were basically meme names. Lucid Group was probably the best known along with DWAC.
SoFi is basically a lending company that provides student loans, auto loan refinancing, etc. It is also involved in the mortgage and investment business. The banking charter has its origins in the deal announced last March by SoFi to acquire Golden Pacific Bancorp, a California-based community bank. The Office of the Comptroller of the Currency gave SOFI conditional approval for its bank charter back in October, and this has now been made official from the OCC and Federal Reserve.
Commenting on the approval, SOFI CEO Anthony Noto said, “With a national bank charter, not only will we be able to lend at even more competitive interest rates and provide our members with high-yielding interest in checking and savings, it will also enhance our financial products and services to ensure they efficiently meet the needs of our members, business partners, and communities across the country, while continuing to uphold a high bar of regulatory standards and compliance".
Overall, this should be a strong positive for the stock, but it does bring the burden of increased regulation and reserve requirements. However, it will allow SOFI to grow its revenue.
SoFi Stock Forecast
SOFI stock has been in a sharp downtrend for most of the last two to three months. The stock is highly volatile as the chart below demonstrates. The first resistance comes from the point of control at $15.23, this is the price with the highest volume. It is not until $16.49 that we end the series of lower highs and so the longer term downtrend.
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SOFI 1-day chart
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