After getting burned by the latest with the “student loan saga,” SoFi Technologies (NASDAQ:SOFI) investors have found a new reason to remain bullish on SOFI stock. That would be news of insider buying of the fintech firm’s shares, by CEO Anthony Noto.
As InvestorPlace’s Eddie Pan reported last week, Noto has purchased $7.4 million worth of SOFI shares so far in December. Yet while insider buying can oftentimes be a bullish signal, it is hardly a guarantee of big returns. In fact, just like everyday investors, insiders sometimes make the wrong call.
There’s a lot to suggest that will end up being the case here for Noto and his recent purchases. It’s hard to see the situation improving for SOFI, whether we are talking about the near-term or the long-term. Instead of following Noto’s lead and making this a buy, holding off remains the better move.
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