SoFi Technologies (NASDAQ:SOFI) has announced the departure of Chad Borton, a top executive at the financial technology major. This month, the company has also undertaken certain financial maneuvers that could be accretive to its Q1 bottom line.
The Departure
Borton, the Executive Vice President and Group Business Unit Leader, Lending & President of SoFi Bank, is resigning from his roles at SoFi Technologies and SoFi Bank, effective April 12. The company has stated that Borton’s departure was amicable, as he is leaving to pursue other opportunities.
Following his departure, Paul Mayer, the Vice President and a Board member at SoFi Bank, will assume the role of President. Borton’s responsibilities will be delegated to other executives within the company. Meanwhile, SoFi is actively searching for a permanent replacement for Borton.
SoFi Issued Over 72 Million New Shares
In another development, SoFi has issued more than 72 million shares in transactions associated with the exchange of its $600 million in principal amount of 0% convertible senior notes due 2026. Earlier this month, the company issued 1.25% convertible senior notes due 2029. SoFi expects these financial maneuvers to be accretive to its GAAP net income for Q1 2024.
Is SoFi Technologies a Buy, Sell, or a Hold?
Shares of the company have corrected by nearly 27.6% so far this year. Yesterday, Jefferies analyst John Hecht maintained a Buy rating on SoFi but slashed the price target on the stock to $12 from $15. Overall, though, the Street has a Hold consensus rating on SoFi. Additionally, an average SOFI price target of $9.09 points to a 26.2% potential upside in the stock.
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