Institutional Funds Reduce SoFi Holdings by Up to 18% in Q3
GatePass Capital LLC cut its SoFi Technologies stake by 18.3% in Q3, selling 22,476 shares and holding 100,045 shares valued at $2.643 million. Hartline Investment Corp trimmed its Q3 position by 11.6%, offloading 60,355 shares to leave 460,402 shares worth $12.164 million.
1. GatePass Capital Reduces Stake in SoFi
In its latest SEC filing for the third quarter, GatePass Capital LLC disclosed an 18.3% reduction in its SoFi Technologies holdings, selling 22,476 shares and retaining 100,045 shares. This position represents 1.5% of GatePass’s overall portfolio and ranks as its 14th largest holding. As of the filing date, the remaining stake in SoFi was valued at $2.64 million, underscoring a strategic shift in allocation away from the digital financial services firm.
2. Institutional Investors Rebalance Portfolios
Several hedge funds and asset managers adjusted their exposure to SoFi during the quarter. SJS Investment Consulting increased its position by 840.3%, acquiring 1,000 additional shares to hold 1,119 shares worth roughly $30,000. ORG Partners added 1,003 shares, a 230.6% boost to reach 1,438 shares valued at $38,000. Bartlett & CO. Wealth Management expanded by 46.9% with 469 new shares, bringing its total to 1,469 shares worth $39,000, while Bfsg LLC tripled its stake, purchasing 1,000 more shares to hold 1,500 shares valued at $40,000. Salomon & Ludwin initiated a position of approximately $29,000 in SoFi equity.
3. Insider Selling Intensifies
Senior executives have significantly reduced their holdings over the last quarter. CEO Arun Pinto liquidated 46,132 shares at an average price of $24.76, a transaction totaling $1.14 million and cutting his stake by 25%. CTO Jeremy Rishel sold 91,837 shares at an average of $26.64, netting $2.45 million and reducing his position by 10.4%. Combined insider sales in the period reached 167,813 shares valued at $4.40 million, bringing total insider ownership down to 2.6% of SoFi’s outstanding shares.
4. Quarterly Results Exceed Expectations and Guidance Set
For the quarter ended September 30, SoFi reported revenue of $949.6 million, outperforming consensus estimates by $69.3 million and marking a 37.7% year-over-year increase. Earnings per share of $0.11 surpassed the street estimate by $0.02, driving a net margin of 19.3% and a return on equity of 5.1%. Management issued full-year guidance of $0.37 EPS, while analysts project $0.26 for the current fiscal year. The company’s market capitalization stands at $31.5 billion, with a price-to-earnings ratio of 48.4 and a debt-to-equity ratio of 0.31.