Insider Trading Report: SoFi Technologies (SOFI)

Christopher Lapointe, CFO at SoFi Technologies (SOFI), recently bought 3,500 shares. The stake increased his position by 1.3 percent, and came to a total valuation of about $49,000.

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  • That follows on two buys from the company CEO earlier last week, who bought 14,300 shares in total at a price of about $200,000 in total. These three buys constitute all the insider activity since the company went public on June 1.

    Overall, company insiders own about 26 percent of shares.

    The financial services platform has returned about 16 percent since going public. As an early-stage company, the firm is not yet profitable, but the company brought in nearly $800 million in revenue last year, with a 100 percent growth rate during the pandemic.

    Action to take: Shares are attractive here, given the high percentage of insider ownership, the insider buying from the company CEO and CFO, and the company’s high growth profile. Of course, this early in the company’s operations, shares are a long way from paying a dividend, but that leaves room for more growth first.

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  • For traders, shares have been in a downtrend, but are nearing their post-IPO low. If shares hold the low and move higher, a call option like the January $15 calls, last going for about $2.35, could move higher. But look for a move off the low first, otherwise the trade may be a dud.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.