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SoFi Technologies, Inc. (NASDAQ:SOFI) disclosed Thursday that its Chief Executive Officer, Anthony Noto, entered into a prepaid variable forward contract involving 1,500,000 shares of the company’s common stock. The shares represent about 7% of Mr. Noto’s beneficial ownership and less than 1% of SoFi’s total outstanding shares.
According to the company’s statement, Mr. Noto will receive an upfront cash payment of $24,107,850 as part of the contract with an unaffiliated third-party dealer. The contract is scheduled to mature in approximately three years, on or about August 28, 2028. At maturity, Mr. Noto will have the option to deliver shares or settle the contract in cash. The number of shares or the cash amount to be delivered will depend on SoFi’s share price at that time.
The pledged shares will secure Mr. Noto’s obligations under the contract. He will retain all voting, dividend, and other rights associated with the pledged shares during the contract term.
If Mr. Noto chooses to deliver shares at maturity, the quantity will be determined by the company’s share price relative to a floor price of $18.21 per share and a cap price of $49.18 per share. For example, if the share price is $49.18, he could deliver 555,409 shares; if the price is $18.21 or lower, he could deliver 1,500,000 shares. Mr. Noto will not participate in any performance of the pledged shares above the cap or below the floor price unless he opts for cash settlement.
The company noted that Mr. Noto has not sold any SoFi common stock since joining in early 2018 and has purchased 2,775,307 shares on the open market over the past four years. For deeper insights into insider trading patterns and comprehensive analysis of SoFi’s financial health, InvestingPro subscribers can access detailed Pro Research Reports, which provide expert analysis of key metrics and valuation indicators across 1,400+ top stocks.
This information is based on a press release statement included in SoFi Technologies’ recent SEC filing.
In other recent news, SoFi Technologies reported a strong second-quarter performance, surpassing both Needham’s and Wall Street’s expectations for earnings and revenue. This growth was largely driven by the company’s loan platform business, which achieved an impressive $9.5 billion in annualized origination volume. As a result of this performance, Mizuho raised its price target for SoFi from $20 to $26, maintaining an Outperform rating. Similarly, Needham increased its price target to $25, also citing the company’s robust results.
In addition to its financial achievements, SoFi announced a new partnership with Lightspark to launch blockchain-enabled international money transfers via the SoFi app. This service, expected to roll out later this year, aims to offer users lower fees and faster delivery compared to traditional remittance methods. The integration of blockchain technology through the Bitcoin Lightning Network positions SoFi as one of the first U.S. banks to offer such services. Furthermore, William Blair reiterated its Outperform rating on SoFi, expressing confidence in the company’s growth outlook after discussions with its leadership team.
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