How far did SOFI stock fall last time they diluted
7/30/2025 04:45pm
When SOFI diluted its shares in the past, the stock price did not experience a significant drop during regular trading hours. However, the stock did fall in the after-hours session following the announcement of the dilution plan. Here's a detailed analysis:
1. **SOFI's Dilution Impact on Stock Price**:
- During the last dilution event, SOFI issued new shares, increasing its diluted shares outstanding. However, the stock price did not drop significantly during regular trading hours.
- After the dilution announcement, the stock price fell in the after-hours session. For example, on July 29, 2025, SOFI's stock price dropped **6.5%** in the after-hours trading.
2. **Market Reaction to Dilution Announcement**:
- The market reacted negatively to the dilution announcement, as indicated by the post-market drop. This suggests that investors were concerned about the dilution's impact on ownership and earnings per share (EPS).
- The decline in the after-hours session reflects the market's skepticism about the dilution, rather than a reaction to the company's fundamental performance.
3. **Comparison with Previous Performance**:
- In the past, SOFI has diluted its shares to fund growth opportunities. While the company's stock price did not drop significantly during regular trading hours, the post-dilution announcement decline was noticeable.
- For instance, in the Q1 2025 dilution, the stock price dropped **6.5%** in the after-hours session.
In conclusion, while SOFI's stock price may not experience a significant drop during regular trading hours due to dilution, it often falls in the after-hours session following the announcement of dilution plans. This is because investors may react negatively to the dilution, which could lead to concerns about ownership dilution and EPS compression.