SoFi (NASDAQ:SOFI) stock is in focus following two significant sales from company insiders. Both of these sales were disclosed yesterday following the market close.
First, Chief Risk Officer Aaron Webster disclosed selling 215,299 shares at an average per share price of $8.08. In total, the transaction was worth $1.74 million. On the bright side, Webster still owns 476,221 shares following the sale, although the sale did represent a significant portion of his prior stake.
Next, SoFi Bank President Chad Borton disclosed selling 152,041 shares at an average price of $7.99 per share. The sale was worth $1.21 million, while Borton still owns 157,857 shares following the sale. Like Webster, Borton’s sale accounted for a large portion of his prior stake.
SOFI Stock: Insiders Dump Shares Worth Millions
Insiders are not required to disclose the reasons behind their buys or sales, although its worth noting that SOFI stock is up by more than 65% so far this year. As a result, these sales could be a result of taking some gains off of the table. Insider selling does not always mean that the insider in question has lost faith in their company. These sales could also be a result of liquidating equity in order to fund personal expenses.
During the past year, SoFi insiders have purchased $9.55 million worth of shares and have sold off $10.31 million worth of shares. This nets out to $758,586 of shares sold.
CEO Anthony Noto is entirely responsible for the $9.55 million in insider purchases and has also sold $0 worth of shares in the past year. His last purchase was on May 15 when he acquired 108,000 shares at an average per share price of $4.67. This batch of shares is well in the profit zone, as SOFI stock currently trades in the mid-$7 range.
Overall, SoFi’s insider activity over the past year conveys a bullish signal, although it would be even more bullish for another insider to step in and assist with Noto’s buys. Insider sales can occur for a variety of reasons, but insider buys only occur for one reason: The insider believes that shares will increase in 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.
