Wednesday, May 29, 2024
Stock Market

CEO Anthony Noto Just Bought $5 Million of SOFI Stock

Source: shutterstock.com/rafapress

Shares of SoFi (NASDAQ:SOFI) are in focus following a $5 million purchase by CEO Anthony Noto. The purchase marked Noto’s first purchase of SOFI stock since June 16. Furthermore, the purchases were enacted on Dec. 9, Dec. 12, and yesterday, Dec. 13.

SoFi made headlines last month following the collapse of cryptocurrency exchange FTX. Four U.S. senators wrote open letters to SoFi, asking the company to review its crypto offerings. Specifically, the letters questioned how SoFi holds customers’ crypto and expressed concern about its listing of Dogecoin (DOGE-USD). Furthermore, the letters asked the company to classify if any cryptos offered were securities and, if so, whether the company is licensed to offer securities.

SoFi responded by saying that it has no exposure to FTX, Alameda Research, or FTT, FTX’s native token. The company stated, “Additionally, we maintain consistent, constructive dialogue with each of our regulators. Cryptocurrency remains a non-material component of our business. We look forward to sharing the requested information with the senators in a timely fashion.”

The open letters haven’t fazed Noto, as evident by his significant purchase. Let’s get into the details.

SOFI Stock: CEO Anthony Noto Makes a $5 Million Purchase

On Dec. 9, Noto purchased 682,500 shares at an average price of $4.36. Then, on Dec. 12, he purchased another 132,600 shares priced at $4.29. Finally, on Dec. 13, Noto reported purchasing 318,695 shares at an average price of $4.58. Following the three purchases, the CEO now directly owns a total of 5.08 million shares.

Noto has purchased SOFI on 21 separate occasions this year, demonstrating his bullish view on the stock. Insiders aren’t required to disclose the reasoning behind their purchases. However, it’s widely echoed that insiders only purchase shares of their own company for one reason: because they believe the price will go up.

Nasdaq reports that insiders have purchased 658,366 shares and sold 14.84 million shares in the past 12 months. Nasdaq’s shares-purchased figure has not yet accounted for Noto’s recent buy, so shares purchased in the past 12 months should be 1.79 million shares. Meanwhile, the shares sold figure is largely attributed to SoftBank (OTCMKTS:SFTBY) and may be slightly flawed as well.

In August, the conglomerate reported selling 12.06 million shares. The accompanying Form 4s listed SoftBank as a 10% owner and not as a director. Then, in November, SoftBank reported selling another 22.51 million shares. This time, the accompanying Form 4 listed SoftBank as both a 10% owner and Director. Nasdaq’s internal system may have been thrown off by this, which may have resulted in an inaccurate shares sold figure. Furthermore, Nasdaq does not factor in SoftBank’s November sale.

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.

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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