Cathie Wood’s ARK Buys 299,753 SoFi Shares, Lifts Stake

ARK Innovation ETF purchased 299,753 shares of SoFi Technologies between June 29 and July 1. The buys followed a sale of 114,664 shares earlier in June and were worth about $5.5 million based on SoFi’s July 1 closing price of $18.44, according to ARK trade filings. The transactions produced a net increase in ARK’s exposure to the fintech stock.

The purchases were executed over three trading days and reduced the extent of a position cut earlier in the month. SoFi remains a supplemental holding for ARK; the fund continues to concentrate its assets in a handful of larger positions, with its top 10 holdings accounting for a sizable share of the portfolio and one company representing more than 10% of assets.

SoFi’s share price fell into the mid-$15s during a spring sell-off and traded around $18.24 in late June and early July. The stock is down about 32% year-to-date.

Product developments at SoFi include the June 23 launch of Composer by SoFi, an AI-driven investing platform that allows users to build, test and automate strategies using plain English. The product follows SoFi’s acquisition of Composer Securities and expands the company’s lineup of investing tools.

On June 30, SoFi began offering small-business loans of up to $250,000 with quick decisions, fast funding and no application or origination fees. Industry reports indicate approved borrowers can receive funds as soon as 24 hours after approval.

Insider buying has been reported this year by Chief Executive Anthony Noto, who purchased shares in the open market in March, including a 56,000-share filing and a 28,900-share filing, totaling roughly $1.5 million by March, with later filings showing additional purchases.

SoFi’s first-quarter financial results showed adjusted revenue rose 41% year-over-year to $1.1 billion and adjusted profit doubled to $0.12 per share. Members increased 35% to 14.7 million and loan originations reached a record $12.2 billion. The technology-platform segment posted weaker results after the loss of a large client. Management did not raise full-year guidance in the quarter.

Analyst ratings are mixed. Aggregate ratings show six Buy recommendations, 10 Hold and three Sell, with an average price target of $20.69 and a range from $16 to $30. William Blair expected limited downside despite management’s decision on guidance. Truist cut its target to $17 from $20 in May, citing softer loan-platform sales and weaker technology-platform trends. KBW maintained an Underperform view, citing concerns that the stock’s price already reflects substantial future growth.

The ARK trades resulted in a net increase in the fund’s stake in SoFi amid the company’s product launches, loan expansion and insider purchases.