SoFi CEO Buys $500K Stock as Shares Slide on Debt Allegations
SoFi shares tumbled 4% intraday to below $17 after JPMorgan imposed lending restrictions and short seller Muddy Waters alleged $312 million unrecorded debt and $950 million EBITDA inflation. CEO Anthony Noto bought $500,000 of SoFi stock (28,900 shares at $17.3189) after market close, sending shares up 1% after-hours.
1. Intraday Sell-Off
SoFi shares fell 4% intraday to below $17 after JPMorgan imposed lending restrictions and the announcement of a new short position by Muddy Waters. The sharp drop reflected investor concern over SoFi’s credit exposure and accounting practices.
2. Short-Seller Allegations
Muddy Waters alleged SoFi carries $312 million of unrecorded debt and inflates reported EBITDA by roughly $950 million through manipulated charge-off rates, off-balance-sheet lending structures, and capitalized marketing expenses. The report also criticized the student and personal loan platforms as disguised borrowing vehicles.
3. CEO Share Purchase
CEO Anthony Noto purchased 28,900 SoFi shares at an average price of $17.3189, totaling $500,000, after market close. The insider buy propelled shares 1% higher in after-hours trading, signalling management’s confidence in the company’s financial health.