Harvey Schwartz Is The Director of SoFi Technologies, Inc. (NASDAQ:SOFI) And They Just Picked Up 37% More Shares

By
Simply Wall St
Published
March 21, 2022
NasdaqGS:SOFI
Source: Shutterstock

SoFi Technologies, Inc. (NASDAQ:SOFI) shareholders (or potential shareholders) will be happy to see that the Director, Harvey Schwartz, recently bought a whopping US$513k worth of stock, at a price of US$8.84. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 37%.

View our latest analysis for SoFi Technologies

The Last 12 Months Of Insider Transactions At SoFi Technologies

The Executive Director, Clay Wilkes, made the biggest insider sale in the last 12 months. That single transaction was for US$218m worth of shares at a price of US$21.60 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 silver lining is that this sell-down took place above the latest price (US$9.87). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 218.29k shares for US$2.1m. But insiders sold 11.35m shares worth US$237m. In total, SoFi Technologies insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:SOFI Insider Trading Volume March 21st 2022

I will like SoFi Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. SoFi Technologies insiders own 10% of the company, currently worth about US$933m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The SoFi Technologies Insider Transactions Indicate?

The recent insider purchases are heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with SoFi Technologies and understanding them should be part of your investment process.

Of course SoFi Technologies may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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