At long last, there are two pieces of positive news concerning California-based neo-banking firm SoFi Technologies (NASDAQ:SOFI). First of all, a high-level executive at the company reportedly purchased a very large number of SoFi Technologies shares. Furthermore, SoFi Technologies is working with Mastercard (NYSE:MA) to offer a buy now, pay later (BNPL) service. These developments suggest it’s actually a good time to buy SOFI stock.
SoFi Technologies started out in the student loan business. However, the company evolved into a one-stop-shop fintech firm that provides personal loans and numerous banking services.
Challenging circumstances in 2022 made it difficult for SoFi Technologies to succeed, though. The euphoria of 2021 has already passed, and some folks might wonder whether it’s too late to invest in SoFi Technologies. So, let’s see if there are reasons to stay in the trade despite turbulent economic conditions.
What’s Happening With SOFI Stock?
SOFI stock attempted to break above $25 three separate times in 2021. Then, in 2022, the shares lost most of their value, and now they’re trading below $5 apiece.
This doesn’t mean the situation is hopeless, however. If it’s any consolation, analysts with Piper Sandler recently gave SoFi Technologies an “overweight” rating and a $7.50 price target.
Plus, SoFi Technologies is reportedly teaming up with credit-card giant Mastercard to offer SoFi’s customers a service called Pay in 4. This will be a BNPL service that will allow eligible customers to split certain purchases, ranging from $50 to $500, into four payments.
Moreover, those payments will be interest-free. Working with a well-known company like Mastercard, and making it easier for SoFi’s customers to pay off some small loans, sounds like a win-win scenario.
SoFi Technologies CEO Makes a Huge Share Purchase
In case you need another confidence booster, check this out. SoFi Technologies CEO Anthony Noto recently added to his investment in the company with a massive share purchase.
From Dec. 9 through Dec. 13, Noto purchased around 1.13 million shares of SOFI stock. (This occurred through multiple purchases, not just one big purchase.) Believe it or not, Noto paid roughly $5 million to increase his stake in SoFi Technologies.
There’s an old saying in the financial markets: People sell stocks for many reasons, but they only buy stocks because they believe the price will go up. Does Noto have insider information or another reason to think that SoFi Technologies will gain value? Whatever the case may be, it’s encouraging to see the CEO raise his stake in SoFi Technologies.
So, Is It Too Late to Buy SOFI Stock?
Noto clearly doesn’t think it’s too late to invest in SoFi Technologies. Besides, Mastercard certainly believes in SoFi Technologies; otherwise, there wouldn’t be a partnership between the two companies.
Thus, it’s definitely not too late to buy shares of SOFI stock. Just be sure to keep your position size small, as not everyone needs to buy millions of shares like the CEO is doing.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.