SoFi’s (NASDAQ:SOFI) most prominent insider buyer is back after a roughly six-month hiatus. CEO Anthony Noto, who made his last insider purchase on Nov. 21, just disclosed purchasing 28,775 shares worth $198,548. These shares were purchased at an average price of $6.90 per share.
Noto has now purchased a total of $1.14 million worth of SOFI stock during the past year. During the past two years, his purchases have amounted to $12.46 million. It’s also worth noting that Noto hasn’t sold a single share of SOFI on the open market since the company became a publicly traded entity in late 2020.
At the same time, many of Noto’s early buys are underwater. Between August 2021 and February 2022, his average buying prices ranged between $7.84 and $14.46. SoFi currently trades in the low $7 range.
SOFI Stock: CEO Anthony Noto Picks Up 28,775 Shares
Noto’s purchase comes at a precarious time for the personal finance company. SoFi reported its first-quarter earnings last week, leading to shares falling lower. Shareholders were hoping for a blowout quarter, although the earnings only further exasperated SoFi’s year-to-date (YTD) decline of about 25%.
During the quarter, which marked SoFi’s second consecutive quarter of GAAP profitability, the company’s net revenue tallied in at $644.99 million, up by 37% year-over-year (YOY). Revenue also beat the analyst estimate for $555.3 million by a wide margin. On top of that, its EPS of 2 cents beat the estimate for 1 cent.
However, SoFi’s guidance for Q2 is what dragged shares lower. The company forecast, at the midpoint, revenue of $560 million and net income of $7.5 million. Wall Street was expecting revenue of $580.8 million and $13.9 million of net income.
Fortunately, SoFi’s full-year revenue guidance wasn’t lowered. In fact, it was actually raised. SoFi now expects 2024 revenue between $2.39 billion and $2.43 billion, up from its prior forecast of between $2.37 billion and $2.41 billion. Additionally, SoFi raised its 2024 net income guidance to $170 million at the midpoint, compared to its prior estimate of $100 million.
These raises weren’t enough to satisfy Wall Street, as several analysts lowered their price targets on SOFI stock following earnings.
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.
