The Qatar Investment Authority (QIA) has recently divested a significant portion of its investment in SoFi Technologies, Inc. (NASDAQ:SOFI), a finance services company based in San Francisco. On June 13, 2024, QIA sold a total of 19,840,073 shares of common stock at a weighted average price of $6.78 per share, resulting in a total sale value of approximately $134.5 million.
The sale was conducted through a series of transactions with prices ranging from $6.75 to $6.91. The exact number of shares sold at each price point within this range is available upon request from the company, any security holder of SoFi Technologies, Inc., or the Securities and Exchange Commission.
QIA FIG Holding LLC, a subsidiary under the ultimate parent company QIA, was the direct holder of the sold shares. Following the transaction, QIA FIG Holding LLC no longer holds any shares of common stock in SoFi Technologies, Inc.
This transaction was disclosed in compliance with securities regulations, which require insiders to report sales and purchases of company stock. The sale of SoFi Technologies shares by QIA is a notable change in the ownership structure of the company, as detailed in the SEC filing.
It's important to note that Ahmed Al-Hammadi, a member of SoFi Technologies' board of directors, is designated by QIA FIG Holding LLC. Consequently, both QIA and QIA FIG Holding LLC may be considered "directors by deputization" of SoFi Technologies.
The transaction was officially signed off by Andrew Watkins, Associate General Counsel, Compliance, Legal for both Qatar Investment Authority and QIA FIG Holding LLC, as indicated in the SEC Form 4 document filed on June 14, 2024.
Investors and market analysts often monitor such filings to gain insight into insider sentiment and potential shifts in company ownership. The sale by QIA may be of interest to those following SoFi Technologies' stock performance and ownership trends.
In other recent news, SoFi Technologies has reported first-quarter 2024 adjusted revenue and EBITDA of $581 million and $144 million, respectively, surpassing both BofA Securities' estimates and the consensus. Despite this, BofA Securities has reduced its price target for SoFi from $9.50 to $9, maintaining a neutral rating on the stock. SoFi also completed a significant $350 million personal loan securitization with PGIM Fixed Income, part of Prudential Financial (NYSE:PRU), aligning with SoFi's strategy to diversify its capital sources and enhance its lending capabilities.
Furthermore, Keefe, Bruyette & Woods maintained its Market Perform rating on SoFi shares with a price target of $7.50, noting the company's increased sale of personal loans as a positive sign. In addition to these developments, SoFi has made strategic moves to strengthen its balance sheet, including the exchange of convertible notes for common shares and the issuance of new convertible notes.
BTIG began covering SoFi Technologies with a Neutral rating, citing several concerns that could impact the company's stock performance. These include potential credit trend problems, questions about capital levels, and the possibility of increased banking regulations. These are recent developments that may continue to affect SoFi's shares negatively.
InvestingPro Insights
As the Qatar Investment Authority (QIA) steps back from its stake in SoFi Technologies, Inc., investors may be curious about the financial health and future prospects of the company. According to InvestingPro data, SoFi has a market capitalization of $7.19 billion and a trailing twelve-month revenue growth of 34.6%, signaling robust top-line expansion. The company's gross profit margin stands impressively at 82.33% for the last twelve months as of Q1 2024, reflecting a strong ability to retain earnings after the cost of goods sold is accounted for.
However, SoFi's stock price has witnessed significant volatility, with a 6-month price total return of -28.19%. This could be of interest to investors looking for potential growth opportunities, especially considering that net income is expected to grow this year, as per one of the InvestingPro Tips. Another tip suggests that analysts are predicting the company will be profitable this year, which could indicate a turning point for SoFi's financial trajectory.
For those interested in a deeper dive into SoFi Technologies' financials and future outlook, InvestingPro offers additional insights. There are a total of 9 InvestingPro Tips available for SoFi, providing a comprehensive analysis of the company's performance and expectations. To access these tips and enhance your investment strategy, visit https://www.investing.com/pro/SOFI and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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