SoFi Technologies Insider Transactions: A Brief Analysis

Published 5 months ago

SoFi Technologies, Inc.’s (NASDAQ:SOFI) shareholders might be somewhat perturbed by the recent sale of a substantial amount of stock by the company’s Chief Risk Officer and Global Head of Operations & LatAm, Aaron Webster. Webster sold US$1.7m worth of shares at US$8.08 each, reducing his holding size by 31%.

Insider Transactions in the Past Year

Throughout the past year, several noteworthy transactions occurred within SoFi Technologies. The most significant purchase was executed by CEO & Director Anthony Noto, who acquired US$5.0m worth of shares at US$4.58 per share. However, his purchase happened at a valuation considerably lower than the present price of US$7.42, offering little insight into whether insiders find the current price appealing. Over the last year, Noto bought 2.11m shares at an average price of US$4.64.

Insider Ownership in SoFi Technologies

Insider ownership can provide a clue about how well the interests of the company’s executives align with those of its shareholders. In SoFi Technologies, insiders own approximately US$456m worth of shares, equating to 6.4% of the company. This degree of insider ownership could be a positive sign for shareholders as it suggests that the management’s incentives align well with those of other shareholders.

Implications of Recent Insider Transactions

Despite the recent sale of shares by an insider, the overall picture of insider transactions at SoFi Technologies over the past year is less concerning. Insiders appear more eager to buy shares if we consider transactions from the last twelve months. Coupled with the substantial insider ownership, the recent selling is less worrying.

However, understanding investment risks associated with SoFi Technologies is crucial. Three warning signs have been identified with SoFi Technologies that should be considered as part of the investment process.

While the recent transactions provide some insight, it is important to note that SoFi Technologies may not necessarily be the ideal stock to purchase. Investors are encouraged to explore other companies with high Return on Equity (ROE) and low debt.

Insiders, for the purposes of this analysis, are individuals who report their transactions to the relevant regulatory body. Only open market transactions and private dispositions of direct interests have been considered in this article.