Stock traders, mark your calendar for July 12. That’s when shareholders of San Francisco-headquartered neo-banking firm SoFi Technologies (NASDAQ:SOFI) will vote on a potential reverse stock split. This event could prove to be a pivotal moment for the company, and for the future trajectory of SOFI stock.

2022 has been a tough year for banks, both traditional ones and neo-banks like SoFi. As the Federal Reserve aggressively raises interest rates, this dis-incentivizes borrowing and lending activity. That’s bad news for banks as borrowing and lending are their bread and butter.

Still, at least one prominent Wall Street expert seems to believe that SoFi can thrive amid this challenging macro backdrop. Besides, the imminent shareholder vote could give SoFi’s investors the jump-start they’ve been waiting for this year.

What’s Happening With SOFI Stock?

On a technical level, there’s not much good news to report here. We can discern a clear resistance level with SOFI stock at $25, as the buyers hit that invisible ceiling multiple times in 2021.

It has been all downhill from there, as the SoFi share price slid from the mid-$20s in November 2021 to $6 and change recently. At this rate, the stock could fall below $5, which some folks would informally label as penny stock territory.

A combination of factors seems to have weighed on SOFI stock lately. Along with the aforementioned interest-rate hikes, there’s also rising inflation as well as the market’s recent distaste for hyper-growth stocks.

Mizuho analyst Dan Dolev, doesn’t seem too worried, though. Not long ago, Dolev called SoFi an “attractive ‘FinBank’” with “the allure of a branded, next-gen FinTech.” Moreover, as SoFi has received banking-charter approval from the Federal Reserve, Dolev observed that “being a bank” as opposed to a non-bank fintech app “helps keep funding costs low.”

Big Day Coming

With that in mind, Dolev issued a “buy” rating and a $7 price target on SOFI stock. However, the share price might end up being significantly higher than $7 this year, due to an upcoming shareholder vote.

As InvestorPlace contributor Vandita Jadeja reported, a proxy statement from SoFi revealed that the company is considering a reverse share split. This event, if it happens, would reduce SoFi’s outstanding shares and increase the price of the company’s common stock shares by effectively combining them.

In other words, SoFi’s investors would have fewer shares, but those shares would be higher-priced. There’s no actual net gain or loss from this scenario, but there could be an indirect benefit.

For example, a 1-for-10 reverse split would mean that SOFI stock could trade at $60 instead of $6. Consequently, there would be a greatly reduced likelihood of the stock falling below the crucial $5 threshold anytime soon.

Thus, as Jadeja explained, July 12 “will be an important day for the company when investors will vote on whether to grant SoFi the power to enact a reverse stock split or not.” This could be a make-or-break moment for the shareholders, and by extension, for SoFi itself.

What You Can Do Now

There’s no guarantee that SoFi’s investors will vote in favor of a reverse stock split, or that the company will enact one even if it’s approved. Still, at least the shareholders have a potentially positive catalyst now.

It’s undoubtedly risky to invest in SOFI stock now due to the challenging economic environment for banks. Nevertheless, SoFi offers an intriguing value proposition as the company combined banking with next-generation fintech. Thus, as SoFi’s investors prepare to cast their votes, now may be the time to consider buying a few shares.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.