Trading Around Small-Cap Names Ahead of Fed Rates Decision
Plus, Wall Street is taking a new look at SoFi.
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Readers already know that portfolio holding SoFi Technologies (SOFI) reported the firm’s third quarter on Tuesday and blew Wall Street away with an excellent quarter and sharply improved guidance.
We have always been positive on SOFI here and it really has not gone all that well this year. Most of Wall Street had “taken the other side” of that trade (many of them after much of the damage). A number of analysts that cover the stock have waited until Wednesday morning. We have a $24 target here at the portfolio. So, what are the supposed “pros” who have no skin in the game saying? Here’s your list…
On Tuesday
Analyst Mahir Bhatia of Bank of America reiterated his “sell” rating on SOFI but increased his target price from $16 to $16.50. Bhatia is rated at 4.5 stars out of five by TipRanks. Over the past two years, he has compiled a 66% success rate while generating an average return of 13%.
Analyst Peter Christiansen of Citigroup reiterated his “buy” rating on SOFI while maintaining his $30 target price. Christiansen is rated at 0.5 stars out of five by TipRanks. Over the past two years, he has compiled a 42% success rate while generating an average return of -6.2%.
On Wednesday
Analyst Tim Switzer of KBW reiterated his “sell” rating on SOFI but increased his target price from $15 to $16. Switzer is rated at five stars out of five by TipRanks. Over the past two years, he has compiled a 70% success rate while generating an average return of 18.1%.
Analyst Terry Ma of Barclays reiterated his “hold” rating on SOFI while maintaining his $18 target price. Ma is rated at one star out of five by TipRanks. Over the past two years, he has compiled a 52% success rate while generating an average return of -3.2%.
Analyst Donald Fandetti of Wells Fargo reiterated his “hold” rating on SOFI but increased his target price from $17 to $18. Fandetti is rated at 4.5 stars out of five by TipRanks. Over the past two years, he has compiled a 64% success rate while generating an average return of 15.7%.
Analyst Lance Jessurun of Scotiabank reiterated his “buy” rating on SOFI while increasing his target price from $25 to $26. Jessurun is rated at 1.5 stars out of five by TipRanks. Over the past two years, he has compiled a 59% success rate while generating an average return of -0.7%.
Analyst Jeffrey Adelson of Morgan Stanley reiterated his “sell” rating on SOFI while maintaining his $15 target price. Adelson is rated at 0.5 stars out of five by TipRanks. Over the past two years, he has compiled a 37% success rate while generating an average return of -8.9%.
Analyst Will Nance of Goldman Sachs reiterated his “hold” rating on SOFI while increasing his target price from $15 to $18. Nance is rated at zero stars out of five by TipRanks. Over the past two years, he has compiled a 50% success rate while generating an average return of -7.6%.
Upcoming Portfolio Earnings
Ocular Therapeutix (OCUL), Wednesday, November 4
Consensus: adjusted EPS of -$0.35 on revenue of $14.3 million
Aspen Aerogels (ASPN), Thursday, November 5
Consensus: adjusted EPS of -$0.07 on revenue of $72.1 million
Peloton Interactive (PTON), Thursday, November 5
Consensus: adjusted EPS of $0.13 on revenue of $552.7 million
Rocket Lab (RKLB), Monday, November 9.
Consensus: adjusted EPS of -$0.02 on revenue of $257.2 million
Evolv Technologies (EVLV), Tuesday, November 10
Consensus: adjusted EPS of -$0.02 on revenue of $45.6 million
Ondas Inc (ONDS), Friday, November 13
Consensus: adjusted EPS of -$0.09 on revenue of $148.1 million
Planet Labs (PL), on or close to December 10
Consensus: adjusted EPS of -$0.03 on revenue of $104.5 million
Portfolio News
Evolv Technologies (EVLV)
On Friday, Evolv Technologies announced that Evolv Express and Evolv eXpedite had been deployed at the Delta Center in downtown Salt Lake City. The arena, home to the Utah Jazz (NBA) and the Utah Mammoth (NHL), seats between 14,000 and 19,000 guests depending on use and configuration. The Delta Center deployments are part of a multi-year hardware and software subscription agreement between Evolv and Smith Entertainment Group, which is the holding company that owns both teams as well as the arena.
Peloton Interactive (PTON)
On Monday, analyst Eric Sheridan of Goldman Sachs reiterated his “buy” rating on PTON but reduced his target price from $7.50 to $6.50. Sheridan is rated at 4.5 stars out of five by TipRanks. Over the past two years, he has compiled a 51% success rate while generating an average return of 16.2%.
Tuesday’s Intention vs Actual Trade
Intention: Sell 25 shares of SOFI at or around the last sale of $16.14
Actual trade: Sold 25 shares of SOFI at $16.08
Wednesday’s Intention
The portfolio is going to “trade around” a few core positions ahead of the Federal Reserve press conference.
Sell 10 shares of ONDS at or around the last sale of $6.69 (bought the most recent 10 shares at $6.10).
Sell 10 shares of PL at or around the last sale of $14.52 (bought the most recent 10 shares at $13.43).
Sell 4 shares of RKLB at or around the last sale of $58.23 (bought the most recent 4 shares at $51.315).
Current Positions
Long 60 shares of (ASPN) at $5.1083. Target price: $10. Last sale: $5.42.
Long 50 shares of (EVLV) at $5.33.92. Target price: $7.50. Last sale: $4.65.
Long 170 shares of (OCUL) at $8.1627. Target price: $12. Last sale: $6.78.
Short one OCUL $9 December 18 call at $0.80. Last sale: $0.43.
Long 310 shares of (ONDS) at $7.7674. Target price: $12. Last sale: $6.69.
Long 110 shares of (PL) at $19.7084. Target price: $20. Last sale: $14.52.
Short one PL $17 November 19 call at $1.70. Last sale: $0.31.
Long 70 shares of (PTON) at $5.0654. Target price: $9. Last close: $5.25.
Long 14 shares of (RKLB) at $59.7914. Target price: $84. Last close: $58.23.
Long 150 shares of (SOFI) at $15.90. Target price: $24. Last close: $16.43.
Cash: $434.83.
Portfolio value: $8,988.51, -10.1% from inception on March 24.
At the time of publication, Guilfoyle was long ASPN, EVLV, OCUL, ONDS, PL, PTON, RKLB and SOFI.
