SoFi Technologies, Inc. (NASDAQ:SOFI) executive Kelli Keough, who serves as the company's EVP, GBUL, SIPS, has recently sold 9,308 shares of the company's common stock. The transaction, which took place on September 23, was executed at a weighted average price of $7.987 per share, falling within a price range of $7.93 to $8.07. The total value of the shares sold by Keough amounts to approximately $74,342.
The sale was conducted in accordance with a Rule 10b5-1 Trading Plan, which Keough had adopted on May 21, 2024. This plan allows company insiders to set up a predetermined schedule to sell stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
Following the sale, Keough still retains a significant stake in SoFi Technologies, owning 161,511 shares directly. The company, known for its financial services and headquartered in San Francisco, has been a notable player in the finance sector.
Investors and the market typically keep a close eye on insider transactions as they can provide insights into an executive's view of the company's prospects. However, sales made under a 10b5-1 Trading Plan often carry less weight in terms of signaling, as they are planned trades set up well in advance.
The specifics of the transaction were detailed in a Form 4 filing with the Securities and Exchange Commission, which is a requirement for insiders to report their trades. Keough's sale is a matter of public record, and further details, including the exact number of shares sold at each price point within the reported range, are available upon request to the SEC, SoFi Technologies, or any of its security holders.
In other recent news, SoFi Technologies reported a noteworthy Q2 2024 earnings with a record-breaking adjusted net revenue of $597 million, signifying a 22% year-over-year increase. The company also marked its third consecutive quarter of GAAP profitability with a net income of $17 million. The Financial Services segment's revenue saw a massive surge of 80% year-over-year, while the Tech Platforms segment posted a 9% increase.
SoFi's recent developments also include the addition of 643,000 new members, bringing the total to 8.8 million, and an increase of 946,000 products to 12.8 million. The lending segment saw a strong performance with personal loan originations at $4.2 billion and noticeable growth in home and student loan originations.
Despite a cautious approach to personal loan expansions due to potential economic downturns and unemployment concerns, SoFi provided positive guidance for Q3 and full-year 2024. The company forecasts Q3 adjusted net revenue of $625-645 million and full-year 2024 projections include adjusted net revenue of $2.425-2.465 billion.
The company's diversified revenue streams and cost-efficient capital sources are expected to drive continued growth, according to analysts. However, the Credit Card and Invest businesses are currently operating at a $100 million annualized loss, although profitability is anticipated in the future.
InvestingPro Insights
SoFi Technologies, Inc. (NASDAQ:SOFI) has been under the microscope following the recent stock sale by EVP Kelli Keough. The company's financial health and future prospects are of particular interest to investors. According to InvestingPro data, SoFi has a market capitalization of $8.35 billion, with a notable revenue growth of 30.3% in the last twelve months as of Q2 2024. This growth is a positive sign, reflecting the company's ability to increase its revenue streams.
In addition to the robust revenue growth, SoFi has demonstrated a strong return over the last three months, with a price total return of 19.72%. This performance might be indicative of investor confidence and market recognition of the company's growth potential. Despite this, the company has shown signs of volatility, with a price percentage of 52-week high at 74.64%, suggesting that the stock price has seen significant fluctuations within the past year.
InvestingPro Tips highlight that while SoFi is expected to see net income growth this year, analysts have flagged concerns such as a quick cash burn and a valuation that implies a poor free cash flow yield. These factors may be critical for investors to consider when evaluating the company's long-term value. Additionally, three analysts have revised their earnings upwards for the upcoming period, which may signal optimism about the company's financial performance. For more comprehensive analysis and additional InvestingPro Tips, interested parties can explore the full suite of tips available on the InvestingPro platform.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.