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Either way, it will be interesting to find out whether the CEO eventually prevails with his large-scale wager on SoFi. Maybe that’s true, but it’s also possible that Noto simply expects SOFI stock to recover soon. “We think he’s trying to signal to investors that contagion impacting names like SoFi is creating a buying opportunity,” Silverman stated. VerityData research director Ben Silverman seems to suggest that Noto is sending a message to investors with his share purchase. Plus, SoFi assures it “does not hold assets with Silicon Valley Bank.” Unlike Silicon Valley Bank, SoFi wasn’t a large-scale owner of government bonds. This put a great deal of pressure on Silicon Valley Bank’s bond-heavy balance sheet. Bear in mind, government bond prices cratered as their yields increased over the past year. Perhaps, it’s because SoFi isn’t overly exposed to bond-market risk like Silicon Valley Bank was. This begs the question, then, of why Noto would boldly choose to double down on his company’s shares. We sat down with Anthony Noto, CEO of SoFi, and Clay Wilkes, CEO of Galileo, to discuss their most recent transaction in which SoFi acquired Galileo for the. Eastern today, so it looks like Noto is buying while other investors are selling. SOFI stock was down between 3% and 4% at 10:00 a.m. So, how is the market reacting to all of this head-spinning news?
To be more precise, Noto bought 180,000 SoFi shares and paid an average of $5.5283 per share. On Friday, the chief executive purchased around $995,000 worth of SOFI stock. One person who doesn’t seem to be very worried, however, is SoFi CEO Anthony Noto. Some anxious financial traders might worry about contagion risk due to the Silicon Valley Bank’s implosion. And SIVB stock hasn’t been tradable on the stock market since Friday. Its subsidiary, Silicon Valley Bank, is currently under the control of the Federal Deposit Insurance Corporation (FDIC) and is up for auction. In case you didn’t get the memo, Wall Street is in an uproar over the collapse and possible rescue of SVB Financial S SIVB. In actuality, a Securities and Exchange Commission (SEC) filing indicates that the company’s chief executive is buying more SOFI stock. Wall Street, on average, sees a more than 70% upside in the stock from here.Is the CEO of app-based bank SoFi Technologies SOFI panic-selling while some traders fret over a potential collapse of the banking system? Not at all. In May, SoFi Technologies reported better-than-expected results for its fiscal first quarter. We are thriving in this environment because we’re taking share from traditional banks and that our members are doing more and more with us every day. We’re offering 1.5% interest rate on our checking account pretty much unmatched. Noto is also convinced the changes President Biden proposed to student loan will likely be a “net positive” for the Nasdaq-listed company that’s lately been expanding its market share. SoFi Technologies is expanding market share Noto has been loading up on shares of SoFi Technologies this year – another sign of his confidence in the company’s future. He reiterated the guidance for a 50% year-on-year growth in revenue to $1.50 billion in 2022. We’re looking at a vast amount of economic data to make sure that we’re green across the board. So, in a higher rate environment, we’re seeing really strong demand. In periods of uncertainty and volatility, need for financial services goes up. Explaining how that helps SoFi, Noto said on an exclusive CNBC interview: There’s been unrest in the equity market for months as investors continue to grapple with the prospects of a soft landing. Still, CEO Anthony Noto says the personal finance company is well-positioned to benefit from the rising rates. SoFi Technologies Inc ( NASDAQ: SOFI) has taken quite a beating in 2022, now down nearly 65% year-to-date.
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