Shares of SoFi Technologies (SOFI) gained 3.2% on Wednesday, reaching $18.28 in early trading on the Nasdaq, after a regulatory filing revealed that CEO Anthony Noto had increased his stake in the company. The purchase comes at a pivotal moment, just ahead of the Federal Reserve's interest rate decision.
According to a Form 4 filing with the SEC, Noto acquired 13,888 shares on June 16 at an average price of $18.0578, totaling approximately $251,000. The trades were executed in a range between $18.025 and $18.070. This latest buy brings his direct ownership to 11,960,507 shares.
The insider buying coincides with a period of volatility for SoFi, which has seen its stock decline more than 32% year-to-date despite the recent uptick. The broader market was also modestly higher, with the Dow Jones Industrial Average up 0.15%, the S&P 500 gaining 0.11%, and the Nasdaq Composite adding 0.35% as of 9:41 a.m. ET. Wall Street widely expects the Fed to hold rates steady at 3.50% to 3.75%.
SoFi is particularly sensitive to interest rate movements because borrowing costs directly affect loan demand, funding expenses, and credit performance. Jeff Buchbinder, chief equity strategist at LPL Financial, commented on the rate environment, noting that new Fed Chair Kevin Warsh would likely aim to avoid a sharp rise in the 10-year Treasury yield.
The company's most recent quarterly results provided some positive momentum. First-quarter adjusted net revenue surged 41% year-over-year to $1.1 billion, while net income reached $166.7 million. Adjusted EBITDA climbed 62% to $339.9 million, and total members increased 35% to 14.7 million. Noto described the quarter as “excellent” and highlighted that the expansion in digital assets is “strengthening and diversifying” the platform. Management has guided for full-year 2026 adjusted net revenue of approximately $4.655 billion and adjusted earnings near 60 cents per share.
However, analysts remain cautious. According to TipRanks, the consensus rating on SoFi stock is Hold, with six Buy ratings, ten Hold ratings, and three Sell ratings over the past three months. The stock faces several headwinds. SoFi's Technology Platform revenue dropped 27% in the first quarter after losing a major client. Additionally, annualized charge-offs on personal loans increased to 3.03% from 2.80% in the previous quarter. If the Fed does not cut rates or if credit losses continue to rise, the stock's recent rebound may prove short-lived.
Trading activity was robust, with more than 10 million shares changing hands during the session. SoFi outperformed its peers, topping Ally Financial's 1.3% gain, LendingClub's 2.8% rise, and matching Robinhood's 3.2% advance. The market is also operating on a shortened week, with U.S. equity and options markets closed on Friday, June 19, for Juneteenth, making Thursday the next full trading day after the Fed's decision.
