During mid- to late 2025, shares in SoFi Technologies (SOFI +1.72%) were on a tear. Shares zoomed from under $10 to over $30 per share thanks to a series of promising quarterly results. In more recent months, however, bullishness has screeched to a halt.
Worse yet, after staying range-bound from September through January, this fintech stock has started to pull back, and now appears to be on a downward trajectory.
SoFi has been a "meme stock" in the past, but institutional investors, many of whom bought into the stock last year, could be driving recent price action.
Even so, that may not necessarily mean it's time to follow their lead.
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Numerous heavy hitters bought into SoFi last year
Based on 13-F filings for the quarter ending Sept. 30, 2025, SoFi Technologies attracted a considerable amount of investor inflows from major asset managers. During the period, J.P. Morgan Chase increased its position by 18 million shares, to around 65 million shares, equating to 5.4% of shares outstanding.
Funds managed by BlackRock also upped their stakes during the September quarter. In total, the funds increased their position by around 13.5 million shares, giving the asset manager control of around 5.2% of SoFi's outstanding stock.
Alongside these asset managers, Wall Street trading firms like Susquehanna, Citadel, and Jane Street also increased net positions, to the tune of 10.6 million, 8.6 million, and 7.9 million shares, respectively.
Irrespective of Wall Street's angle, stay focused on the long-term bull case
In a few weeks, asset managers will release their next round of 13-F filings. It will be interesting to see if these asset managers have cut their positions, but based on recent quarterly results, SoFi's overall growth story appears intact.
SoFi continues to gradually grow its loan, banking, and financial services user base. As anticipated in earnings forecasts, incremental growth will result in further mid-double-digit earnings growth.
In turn, this could help the stock sustain its rich forward price-to-earnings ratio of 38.6, with shares continuing to climb in line with increased earnings.
