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SoFi Technologies, Inc. (NASDAQ:SOFI) reported that its Chief Financial Officer, Christopher Lapointe, entered into a prepaid variable forward contract with an unaffiliated third-party dealer on 500,000 shares of SoFi common stock. The transaction was disclosed Wednesday in a statement based on a filing with the Securities and Exchange Commission. This development comes as SoFi’s stock trades at $32.21, near its 52-week high of $32.73, having surged 138.59% over the past year according to InvestingPro data.
Under the terms of the agreement, Mr. Lapointe will receive an upfront cash payment of $11,771,830 and has pledged 500,000 shares of SoFi common stock—representing less than 0.05% of the company’s total outstanding shares—to secure his obligations under the contract. The contract is scheduled to mature on or about November 12, 2027.
At maturity, Mr. Lapointe may choose to deliver shares of SoFi common stock or settle the contract in cash. The number of shares or the cash amount to be delivered will be determined by the market price of SoFi’s stock at the time of settlement. If Mr. Lapointe elects to deliver shares, the number will depend on the stock price relative to a floor price of $25.38 per share and a cap price of $50.58 per share. For example, if the share price is $50.58 at maturity, he could surrender 250,890 shares; if the price is $25.38 or lower, he could surrender 500,000 shares.
During the term of the contract, Mr. Lapointe will retain all voting, dividend, and other rights associated with the pledged shares. The company stated that Mr. Lapointe has not sold any SoFi common stock since joining the company in 2018, and that a majority of his compensation is in the form of company equity.
This information is based on a press release statement contained in the company’s recent SEC filing.
In other recent news, SoFi Technologies has announced the launch of SoFi Crypto, making it the first nationally chartered, FDIC-insured bank to offer cryptocurrency trading. This new service allows members to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, and Solana directly within the SoFi app. The rollout of this service will be phased, with availability expanding to more members in the coming weeks. In addition, SoFi’s third-quarter earnings exceeded Wall Street expectations, with strong performance in its core lending business. As a result, Needham raised its price target for SoFi to $36, maintaining a Buy rating. Jefferies also increased its price target to $35, citing record originations and member growth. William Blair reiterated an Outperform rating, highlighting SoFi’s strong credit performance and significant new member additions. Meanwhile, United Airlines introduced a new MileagePlus Debit Rewards Card, allowing members to earn miles through everyday purchases and account balances.
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