SoFi Technologies Snaps 7-Day Win Streak After Student Loans Forgiveness News.

The student loans provider posted consecutive sessions of gain after the company's financial technology platform Galileo updated on its wire transfer capabilities for fintechs in a July 9 statement.

The stock added 21.49% over the course of the last seven trading days, finishing 1.16% above its previous close at $7.84 on Wednesday, July 17.

However, the trend was reversed after the Biden administration announced today that it is forgiving $1.2B in student loans for an additional 35,000 public service workers through its Public Service Loan Forgiveness program.

Other student loan providers Navient and Nelnet were also impacted by the announcement.

SOFI has declined by ~23% year-to-date, and is trading 15% above its 20-day simple moving average.

Short interest was at an above-average 18.51% of the shares float as of June-end, representing 187M shares sold short.

"In the last two consecutive quarters, SoFi has shown improvement in their financials, achieving GAAP profitability as promised by management last fall. Promises made, promises kept," said Seeking Alpha analyst Noah's Arc Capital Management.

"Despite this positive shift, shares continue to face downward pressure. This is likely caused by speculation over potential loan defaults and deteriorating credit quality within SoFi's asset portfolio. I believe this speculation is incorrect and misguided," the author said.

SA analysts grade the stock as Buy on average.

Meanwhile, the sell-side analysts and the Quant Rating system assign SOFI a Hold rating.

Quant gives the stock a C for Valuation, A for Growth, F for Profitability, D- for Momentum and B for Revisions, with an overall score of 3.14 on a scale of 5.

SoFi was on the list of the "Top Sell" ideas by Oppenheimer Asset Management.

Appeals Court Blocks Biden's SAVE Student Loan Debt Relief Plan

A federal appeals court has blocked President Joe Biden's administration from implementing its Saving on a Valuable Education (SAVE) student debt relief plan.

The Details: The St. Louis-based 8th U.S. Circuit Court of Appeals granted a request by seven states to put on hold parts of the U.S. Department of Education's debt relief plan. Combined with a previous ruling last month by U.S. District Judge John Ross in St. Louis, the entire SAVE plan is now blocked from being implemented as the legal process continues.

"Appellants' emergency motion for an administrative stay prohibiting the appellees from implementing or acting pursuant to the Final Rule until this Court rules on the appellants' motion for an injunction pending appeal is granted," 8th Circuit Court stated in its ruling.

According to a report from Business Insider, the Department of Education's Solicitor General Elizabeth Prelogar recently responded to the court on the confusion that would be caused if implementation of the SAVE plan was blocked at this stage.

"Many have already received bills that reflect the decrease in monthly payments to 5% of their discretionary income," Prelogar wrote. "Many would experience intense confusion when they are told that their payments must be recalculated and that they must be placed in forbearance — which would delay any eventual loan forgiveness."