Executives might sell their shares for any number of personal reasons—funding vacations, covering big expenses like a daughter's wedding, or diversifying their investments.
But when they buy their own stock, it speaks volumes. There's usually only one reason: they believe the stock is undervalued and poised to go up.
While many are quick to sound alarms over insider sales these days, I prefer to focus on when and where these leaders put their money into their own companies.
Then, as technicians, we decide if the stock offers a favorable risk vs reward opportunity that we want to join in on.
One transaction from today's list that stood out was made by Eric Schuppenhauer, Executive Vice President and Group Business Unit Leader for Borrowing at SoFi Technologies $SOFI.
Schuppenhauer, who joined SoFi in September, made his first open-market purchase of 30,599 shares, equivalent to $500,000.
This move adds to CEO Anthony Noto's $10 million worth of insider buying between March 2022 and May 2024. We talked about it in detail in our Screamin’ Hot Report back in June. No one else was covering it.
And once again, I find it strange that no one is talking about the recent insider buy this week. Instead, I’m seeing headlines about the Form 144 filings from a handful of employees, which is simply to pay tax on vested stock compensation.
But, it’s all about the chart for us at this point. How can you argue with the kind of momentum that’s come into this stock recently?
SOFI completed a textbook rounding bottom formation last month, breaking out with authority and hitting our initial target in a matter of days.
Currently, the stock is consolidating its gains in a tight, orderly pattern—a healthy pause that we believe will resolve higher, in the direction of the underlying trend.
And if the stock looks overbought or extended here, that’s okay. This happens all the time to the best uptrends.
Apparently, insiders think there is plenty left in the tank as the people closest to the business are just now putting skin in the game.
Their confidence aligns perfectly with the technical setup. This story is just getting started and we're looking up at those all-time highs as the next stop.
