Anthony Noto, CEO at
SoFi Technologies (SOFI), recently bought 15,000 additional shares. The buy increased his holdings by 0.5 percent, and came to a total price of just over $149,000.
This marks the first insider buy since December, when the company’s Chief Risk Officer picked up 1,000 shares. Insiders have largely been sellers since the company went public last year, although major fundholders from before the IPO are the culprit for the overwhelming majority of those sales.
Overall, insiders at the company own about 26.6 percent of shares.
Shares have traded as high as $25 in the past year, and are now as low as $10 per share, marking about a 40 percent drop in the past year. While the early-stage company is far from being profitable, revenue is up 64 percent in the past year.
Action to take: The credit services company is building a small brand across a few niche spaces, and likely has substantial room to grow here in the years ahead. That makes shares a potential buy at depressed prices today, although share buyers may want to start with a partial stake to take advantage of any further market declines.
For traders, shares still appear to be trending down, so a rebound play with a call option may be a bit early. The October $15 calls, last going for about $1.15, could possible trade under $1.00 before shares start moving higher. The option has enough time for a rebound to lead to a sizeable profit on the shares.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
