CEO Anthony Noto Just Bought SoFi Stock Again. Here’s Why.

  • SoFi (NASDAQ:SOFI) CEO Anthony Noto has purchased SOFI stock multiple times this year
  • Director Harvey Schwartz has also added to his position this year
  • On May 13, Noto purchased an additional 39,000 shares, bringing his total to 3,199,339 shares of SoFi stock
SoFi headquarters. SOFI stock.
Source: Michael Vi / Shutterstock

SoFi (NASDAQ:SOFI) is in the spotlight following insider transactions from CEO Anthony Noto and Director Harvey Schwartz. Shares of the personal finance company are now down more than 50% year-to-date (YTD) following the release of its Q1 earnings. Revenue for the quarter came in at $322 million, up 49% year-over-year (YOY) and beating the analyst estimate of $286.4 million. On top of that, SoFi raised its full-year 2022 revenue guidance to between $1.505 billion and $1.51 billion. Previously, the company had guided for full-year revenue of $1.47 billion.

Based on their purchases, Noto and Schwartz seem impressed by SoFi’s earnings. Let’s get into the details.

CEO Anthony Noto Buys SOFI Stock

On May 13, Noto purchased 39,000 shares at an average price of $6.50 per share. This was not a pre-arranged trade, as there was no mention of a 10b5-1 trading plan on the Form 4. In total, the purchase amounted to around $250,000. After the transaction, Noto directly owns 3,199,339 shares.

On the same day, Schwartz purchased 15,000 shares at an average price of $6.50 per share. After the purchase, Schwartz directly owns 229,852 shares of his own company. Like Noto, Schwartz’s purchase was not enacted via a 10b5-1 plan. Meanwhile, the last time Schwartz purchased shares of SoFi was on March 17. On that day, he purchased 58,000 shares at an average price of $8.83 per share.

Noto has been busy with insider purchases this year. On March 17, the CEO acquired 34,000 shares at an average price of $8.91. Three days before that, he purchased 19,042 shares at an average price of $7.84. Furthermore, from March 4 to March 11, Noto acquired 62,927 shares of SoFi. In total, he has acquired 154,969 shares of SoFi this year.

Noto and Schwartz’s purchases seem to be a stamp of approval on SoFi’s long-term potential. The company has several growth factors at play, such as the approval of its bank charter. As of March 31, SoFi had $1.2 billion in deposits. Additionally, investors were surprised to see the company raise its full-year guidance. This is because SoFi’s management expects the federal student loan moratorium to extend beyond 2022. The earnings report also noted that “President Biden may soon introduce some form of student loan forgiveness.”

This is a plus for SoFi, as it means that other parts of the business are accelerating to offset the losses from the moratorium. SOFI stock will definitely be worth keeping an eye on.

On the date of publication, Eddie Pan did not hold (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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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