Vanguard Doubled Down on SOFI Stock


  • Vanguard purchased 4.85 million shares of SoFI (SOFI) during the third quarter.
  • The exchange-traded fund manager is still the largest shareholder of the fintech company.
  • Shares of SOFI stock are down by more than 55% year-to-date.
SOFI stock - Vanguard Doubled Down on SOFI Stock

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Shares of SoFI (NASDAQ:SOFI) are in the spotlight after Vanguard’s Q3 13F filing revealed that it had doubled down on its position. That comes as SoftBank (OTCMKTS:SFTBY) disclosed in its 13F filing that it had sold all of its remaining shares of SOFI stock after sustaining heavy losses in its Vision Fund.

Last week, a Texas federal judge ruled President Joe Biden’s student loan forgiveness plan as unconstitutional. The program seeks to forgive up to $20,000 of federal student loan debt for borrowers. The case was filed by two individuals backed by a conservative advocacy group, who stated the plan “did not follow proper rulemaking processes and was unlawful.”

After the ruling, the Department of Education halted student loan debt relief applications. Furthermore, the U.S. Department of Justice (DOJ) subsequently filed an appeal to the 5th U.S. Circuit Court of Appeals. It’s not known how long the court will take before coming to a decision, although it could take up to several months.

The DOJ has also requested an emergency stay of the order, which means borrowers could possibly receive debt relief before the 5th Circuit Court makes a final decision. Still, the ruling can be seen as a positive for SoFi, as it is heavily involved in the student loan and student loan refinancing business.

With that in mind, let’s get into the details of Vanguard’s SOFI purchase.

SOFI Stock: Vanguard Doubles Down

During the third quarter, Vanguard purchased 4.85 million shares of SOFI, bringing its total stake to 66.81 million shares. In addition, the exchange-traded fund (ETF) manager remains the largest shareholder of the company.

The second-largest shareholder is Red Crow Capital with a 42.65 million share stake. However, Red Crow’s position is only accurate as of Q3 of 2021. In third place is BlackRock (NYSE:BLK), who purchased 826,805 shares during the Q3. That brings the firm’s stake to 31.68 million shares.

Overall, institutional activity for SOFI among 13F filers during Q3 took on a slightly bearish tone. The total amount of 13F filers who own SOFI fell to 446, compared to 448 last quarter. In addition, overall shares held by 13F filers fell to 304.63 million, down from 399.32 million during Q2. On the bright side, the put/call ratio decreased to 1.28 from 1.79. That’s equivalent to 39.32 million calls and 50.16 million puts.

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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