No one has better information about SoFi Technologies $SOFI than its CEO, Anthony Noto.
As chief executive officer, Noto is more than just the leader of SOFI. With almost 7 million shares, he’s also one of their largest individual shareholders.
His stake is worth roughly $48 million based on today’s price.
Between March 2022 and May 2024, Noto filed 22 Form 4s with the SEC, reporting purchases of SOFI shares totaling $10,452,876.
All of these purchases were made on the open market. None were planned or related to stock compensation.
In other words, Noto was buying stock because he thought the share price would rise. It’s really that simple.
Before joining SoFi, he held prominent roles as chief financial officer and chief operating officer at Twitter.
He was also a partner at Goldman Sachs and was the CFO of the National Football League.
Let’s just say the resume checks out. This is the kind of insider we want to follow into a position.
And Noto's substantial and consistent insider buying in recent years can only reflect one thing: strong confidence and conviction in SOFI's long-term prospects.
Here’s the chart, marked up to show Noto’s first and last Form 4 filing.
Notice how he’s been accumulating stock the entire time SOFI has been building a base.
While bulls still have some work to do, this chart suggests a textbook trend reversal could be underway soon.
The Percentage Price Oscillator in the lower pane indicates a potential bullish crossover, suggesting a shift in momentum.
We can define our risk at the August 2022 high, which coincides with the AVWAP from the November 2021 peak around 8.25.
Once this critical level is cleared, the bullish momentum crossover should be in place. We only want to be buyers on strength above this level.
We're targeting 13.80 as an initial target and 28 as a long-term objective.
The insider buying here is really as good as it gets.
While we are still about 15% away from our entry, we want to put our alerts on and be ready. With a 19% short interest, this move can happen fast.
If and when SOFI reverses trend, we’ll be riding it higher with the CEO himself.
