Down Almost 70%, SoFi Technologies' CEO Keeps Buying Shares

Investor sentiment has cratered in recent times in the wake of 40-year-high inflation, the Federal Reserve's decision to raise interest rates in response, and prolonged concerns in connection to Russia's invasion of Ukraine. With investors flocking to value stocks and safer assets for protection, shares of fast-growing technology companies have been especially crushed. While the ongoing correction may continue exerting downward pressure on the technology sector in the coming quarters, many stocks are now trading at tempting valuations.

SoFi Technologies (NASDAQ: SOFI) posted strong first-quarter results on May 10 that eased some of the negative sentiment that has been directing the stock of late. Even so, the growing fintech is still down almost 70% in a six-month span, a steep downswing compared to the S&P 500, which has fallen 13% over the same timeframe.

The company's pullback has attracted the attention of CEO Anthony Noto. Since March, Noto has purchased nearly $1.5 million of SoFi shares, sending a signal to investors that he thinks the company is undervalued. Let's examine whether investors should follow the "smart money" and buy SoFi stock right now.

Source Fool.com