SoFi Technologies Inc.'sSOFI shares jumped almost 10% on Wednesday after CEO Anthony Noto registered an insider purchase of $5 million in 1.1 million company shares.
The personal finance and online bank had been experiencing headwinds as the Biden administration once again extended the payment pause on federal student loans, which according to a Bank of America analyst, are SoFis most profitable line of business.
As if that wasnt enough, a second blow came to SoFi in late November as lawmakers sent a letter to the Federal Reserve urging officials to review SoFis crypto trading activities.
With a strong bet on his own company, the executiveis sending out a sign of hope to the companys shareholders after the stock price hit what might be rock bottom obtainingan all-time low of $4.30 on Monday, the lowest it's ever been since its December 2020 IPO.
Benzingas Insider Trading Activity Monitor registered the purchase, from which the CEO augmented his stake in the company by 28.6%.
Noto bought the shares at a price of $4.42 each, which run at a retail price of $4.80at the time of publication Wednesday.
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