SoFi (NASDAQ:SOFI) CEO Anthony Noto has been on a buying spree this year, and the purchases haven’t stopped in June. So far, Noto has purchased SOFI stock on five separate occasions this month. Year-to-date (YTD), he has purchased shares 16 times.
Last week, it was revealed the fintech company is potentially considering a reverse stock split. In a proxy statement, it was disclosed that shareholders will be able to vote on whether or not to allow the company’s board to initiate a reverse split in the next 12 months. The results of the vote will be shared at Sofi’s annual stockholder meeting on July 12.
The potential split would reduce outstanding shares by a factor in a range between 1-for-2 and 1-for-10. The company noted that a higher stock price would make SOFI more attractive to institutional investors. In addition, a higher price could attract more analyst coverage and talent towards the company.
A reverse stock split is usually viewed with a negative connotation. Still, the prospects of a potential reverse split has not scared off Noto from buying even more shares.
CEO Anthony Noto Keeps Buying SOFI Stock
On June 10, Noto purchased 33,455 shares at an average price of $5.98 per share. He now owns a total of 3.46 million shares. YTD, the CEO has purchased 569,175 shares, with his first buy of the year falling on March 4. In addition, he has not sold a single share of SOFI stock this year.
Besides Noto, two other insiders have purchased shares this year. They are Director Harvey Schwartz and Head of Operations Micah Heavener.
In the past three months, insiders have purchased 381,883 shares while selling 732,315 shares. In total, insiders have amounted to a net activity of 350,432 shares sold.
With interest rates set to rise even higher this year, many investors are wary of the possibility of a recession. The Motley Fool reported that in the event of a recession and/or stagflation, origination volume for loans will decline. As a result, this places SoFi’s lending business in an uneasy and uncertain scenario.
Noto’s relentless purchases suggest he believes SoFi will perform well in the long term, even in the face of a recession. Meanwhile, the majority of his purchases this year are above the company’s current price.
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.
