The CEO of SoFi, Anthony Noto, bought 56,000 shares of his company at an average price of $17.88 per share. The stock hasn't reacted much to this news so far, but for me it's great news because it shows that management believes in further growth of the company and that the shares are currently trading at an attractive price.
What do you think about this news? Are you planning to buy shares of $SOFI?
Bulios Black
This user has access to exclusive content, tools and features of the Bulios platform thanks to their subscription.
If I'm not mistaken, the CEO is also incentivized to a higher share price — he has a bonus set at $25 per share by June 2026. The performance award is 2,145,000 shares.
So the purchase could also be an attempt to support further buying and thereby push the price up.
From a long-term perspective I'll definitely be buying. I'm taking current events into account, and if an even bigger discount came along I'd prefer that.
Bulios Black
This user has access to exclusive content, tools and features of the Bulios platform thanks to their subscription.
Insider buys are generally good news. While they don't mean much on their own, they're another piece in the puzzle of the company's valuation. The stock has so far held nicely around $17, but given the current market situation, which is very fragile, the price could still drop. In any case, the company is doing very well and, from a long-term perspective, the share price will likely increase.
I think the deadline for assessing the market-capitalization requirement for S&P 500 inclusion is on Wednesday. Various sources say different things, but let’s say the price shouldn’t fall below $18 for there to be a chance of being included...
Bulios Black
This user has access to exclusive content, tools and features of the Bulios platform thanks to their subscription.
The mere report that an insider purchase occurred is just that, in my view. It’s not automatically good or bad. What’s important is the broader context: are other members of management buying as well? Are they buying regularly? At what prices? Is it backed by improving financial metrics? Because it could be (I’m not saying that’s the case now—I don’t have that context, so I don’t know) a "window-dressing" maneuver ahead of a new share issuance, or before some problem becomes apparent, and so on...
The shares are reacting. Yesterday they were, I think, at 16.80. He didn’t buy a huge amount, but it’s a positive signal. And maybe he knows something we don’t yet.