In the last year, many SoFi Technologies, Inc. (NASDAQ:SOFI) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At SoFi Technologies
The insider, Aaron Webster, made the biggest insider sale in the last 12 months. That single transaction was for US$1.7m worth of shares at a price of US$8.08 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$7.19. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$743k for 110.23k shares. On the other hand they divested 637.01k shares, for US$5.2m. Over the last year we saw more insider selling of SoFi Technologies shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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SoFi Technologies Insiders Bought Stock Recently
Over the last quarter, SoFi Technologies insiders have spent a meaningful amount on shares. CEO & Director Anthony Noto spent US$199k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of SoFi Technologies
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. SoFi Technologies insiders own about US$131m worth of shares (which is 1.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About SoFi Technologies Insiders?
It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, SoFi Technologies insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for SoFi Technologies and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.