SoFi Stock Is Down More Than 30% This Year. Its CEO Is Buying Anyway.

Shares of digital banking specialist SoFi Technologies (NASDAQ: SOFI) have had a rough 2026. As of this writing, the stock is down about a third year to date, sliding from about $26 at the end of 2025 to around $18.

But while many investors have been selling, the company's CEO has been doing the opposite. Anthony Noto has repeatedly stepped into the market to buy SoFi shares this year, most recently in mid-June.

When a chief executive buys his own stock with his own money -- especially after a steep drop -- it tends to get investors' attention.

Does Noto's conviction make SoFi a contrarian opportunity? Or is the sell-off a fair reflection of the company's risks?

Image source: Getty Images.

The CEO keeps buying

On June 16, Noto bought 13,888 shares of SoFi on the open market at an average price of about $18 apiece, lifting his direct stake to nearly 12 million shares. And that purchase wasn't a one-off. Noto has added to his position several times in 2026, including in March and May, buying more each time the stock fell.

Insider buying like this is worth watching because executives understand their business far better than outside investors do. And open-market purchases carry particular weight. Unlike shares granted as compensation, these are bought with the executive's own cash -- a direct bet that the stock is worth more than the market currently thinks.

That said, Noto's recent buys, while notable, are small relative to his overall stake.

The more useful question is whether SoFi's underlying business backs up his confidence.

The business behind the buying

On that front, Noto has plenty to point to. SoFi's first-quarter net revenue rose 43% year over year to a record $1.1 billion, as the company added a record 1.1 million members and pushed its total membership up 35% from a year earlier to 14.7 million.

Profits are scaling even faster than sales. SoFi's first-quarter net income more than doubled from the year-ago period to $167 million, and earnings per share doubled to $0.12. It was the company's 10th consecutive profitable quarter -- a notable milestone for a business that was losing money just a few years ago. Loan originations, meanwhile, reached a record $12.2 billion.

The company is also still finding new ways to grow. In late June, SoFi launched Composer by SoFi, an artificial intelligence (AI)-powered investing platform that lets users build, test, and automate investing strategies using everyday language.

"Composer has built one of the most innovative AI-powered investing platforms available to retail investors today," said Noto in the company's press release about the launch.

The platform emerged from SoFi's acquisition of Composer earlier this year, and the company plans to weave it into its SoFi Plus membership over time.

So, why is the stock down so much?

The most likely answer is valuation. Even after the sell-off, SoFi trades at about 40 times earnings -- not cheap. But the multiple looks more reasonable measured against the company's growth. On the roughly $0.60 in adjusted earnings per share management expects SoFi to earn this year, its forward price-to-earnings ratio is about 29. For a business growing revenue north of 40% and rapidly expanding profits, that's hardly egregious.

The bigger concern is what SoFi is at its core: a fast-growing lender. Lending is cyclical and carries real credit risk. A weaker economy could push loan losses higher and pressure profits quickly -- and that risk, more than the valuation, is likely what has investors cautious.

Overall, SoFi's business continues to demonstrate impressive momentum. But I'd still be cautious. Shares aren't as expensive as they used to be. But they're not cheap either.

Daniel Sparks and his clients have no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.