- CEO Anthony Noto purchased 27,000 shares of SoFi (NASDAQ:SOFI)
- The day before that, Noto purchased 13,500 shares
- The CEO owns a total of 3.23 million shares
SoFi (NASDAQ:SOFI) has lost more than 50% of its market capitalization since the beginning of the year in the face of rising rates and the extension of the federal student loan moratorium. The large price decline may have caused some investors to sell out for a loss, but not CEO Anthony Noto. The CEO has purchased SOFI stock 10 separate times this year, with the most recent purchase occurring on May 20. In the month of May alone, Noto has purchased SoFi three times.
Furthermore, Noto isn’t the only insider who has been active in buying up shares. Both Director Harvey Schwartz and Head of Operations Micah Heavener have purchased shares multiple times this year as well. Let’s get into the details.
CEO Anthony Buys SOFI Stock … Again
On May 20, Noto purchased 27,000 shares at an average price of $7.31 per share. In total, the purchase amounted to just under $200,000. The day before that, he purchased 13,500 shares at an average price of $7.78 per share. After the purchases, the CEO now owns 3.23 million shares of his own company.
Director Harvey Schwartz has been active as well. Schwartz has purchased SOFI stock twice this year, with his most recent purchase occurring on May 13. On that day, he purchased 15,000 shares at an average price of $6.50 per share. In total, the purchase amounted to around $100,000. After the transaction, the director owns a total of 229,852 shares.
So, how do other insiders of SoFi feel about their company? In the past 12 months, insiders have purchased 405 million shares while selling 181 million shares. In total, insiders have accounted for net activity of 224 million shares purchased. That certainly seems like a bullish insider signal.
In light of the federal student loan moratorium, insiders have been busy buying up shares. While the exact, concrete reasons for these insider purchases are unknown, insiders only buy their own company for one reason: they believe the price will go up. Additionally, like many other fintech companies, SoFi has had a rough 2022. With the stock down more than 50% year-to-date, the chances for higher future returns increases.
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 InvestorPlace.com Publishing Guidelines.