Chief Technology Officer Jeremy Richel sells large stake in SoFi Technologies \

Several SoFi Technologies, Inc. (Nasdaq: SOFI) Shareholders may be a little concerned after seeing that chief technology officer Jeremy Richel recently sold $1.1 million worth of stock for $5.47 per share. This resulted in a significant 66% reduction in their holdings, perhaps hinting at a strong desire to reallocate capital.

Get the latest analysis on SoFi technology.

Insider trading of SoFi technology in the past year

We can see that last year’s largest insider purchase was CEO and Director Anthony Noto’s US$5 million worth of shares (approximately US$4.58 per share). This means that insiders were happy to buy the stock around the current price of $5.02. So far, I’ve been optimistic about the company, although I may have changed my mind. If someone buys a stock at a price well below its current price, that’s a good sign that it’s balanced, but keep in mind that that person may no longer feel valued. . The good news for SoFi Technologies stockholders is that the insider was buying at a price close to current prices.

We can see insiders bought 2.37 million shares worth US$12 million last year. However, insiders sold 481,000 shares worth US$3.2 million. Over the last 12 months, there have been more buys than sells, according to SoFi Technologies insiders. The chart below shows insider trading (by company and individual) over the past year. Click on the chart to see all individual deals including stock, individual and date.

NasdaqGS: SOFI Insider Trading Volume, May 14, 2023

SoFi Technologies isn’t the only stock that insiders are buying.For those who like to find succeed in investing this free A list of growth companies that recently made insider acquisitions might just be your ticket.

Does SoFi technology boast high insider ownership?

Another way to test alignment between company leaders and other shareholders is to look at the number of shares they own. Usually, the higher the insider’s ownership, the more likely the insider will be motivated to build the company in the long term. It’s great that a SoFi Technologies insider owns his 10% of the company, worth about US$488 million. I love seeing this level of insider ownership. Because it increases the likelihood that management has the best interests of its shareholders in mind.

So what does SoFi Technologies’ insider trading tell us?

Recent insider acquisitions are certainly positive. Long-term insider trading also gives us confidence. But on the other hand, the company has been losing money in the last year and is a little more cautious. In addition to high insider ownership, this analysis suggests that the insider is very bullish on his SoFi Technologies. Add at least one to your watchlist. So, while it’s useful to know what insiders are doing when it comes to buying and selling, it’s also useful to know the risks facing a particular want to know what we found Two Warning Signs of SoFi Technology We highly recommend that you take a look.

But please note: SoFi Technologies may not be the best stock to take a look at this free List of interesting companies with high ROE and low debt.

For the purposes of this article, an insider refers to an individual who reports a transaction to the relevant regulatory body. The Company currently accounts for open market transactions and private disposals, but not derivative transactions.

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Check out our comprehensive analysis, including the following, to see if SoFi Technologies is potentially overrated or underrated. Fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst projections, and articles are not intended as financial advice. This is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on underlying data. Please note that our analysis may not take into account the latest announcements or qualitative material from price-sensitive companies. Simply Wall St does not have any positions in any of the securities mentioned.

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