SoFi Calls Short Seller Report ‘Factually Inaccurate and Misleading,’ Stock Rises as CEO Noto Buys Shares

FomoAnxiety · 2026-03-18T08:34:42+00:00

SoFi Technologies' stock rose over 1% following CEO Anthony Noto's substantial share purchase, despite a negative report from short seller Muddy Waters. The company disputed the report's claims and considered legal action, asserting its compliance with financial regulations. Analysts remain cautious due to valuation concerns.

FomoAnxiety

2026-03-18 08:34:42

Abstract generation in progress

SoFi Technologies SOFI -1.47% ▼ rose more than 1% in Wednesday’s pre-market trading after falling about 1.5% yesterday in reaction to short seller Muddy Waters’ report, which called the fintech “a financial engineering treadmill, not a healthily growing origination business.” The rise in SOFI stock was driven by CEO Anthony Noto’s purchase of 29,800 SOFI shares at an average price of $17.32, bringing the aggregate price to more than $500,000. Moreover, the company denied the short seller’s accusations and said that it is exploring potential legal action against Muddy Waters’ “factually inaccurate and misleading report.”

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Even before Noto’s latest purchase, SOFI received a “Very Positive” score based on informative buys worth $1.2 million in the last three months, according to TipRanks’ Insider Trading Activity Tool.

SoFi Disputes Short Seller Muddy Waters’ Report

SoFi said that Muddy Waters’ claims in its report reflect a “fundamental lack of understanding” of the company’s financial statements and business. The company stated that Muddy Waters is known for such reports that impact shareholder value, allowing short sellers to profit from a lower stock price.

Given that Muddy Waters disclosed that it intends to cover possibly all of its short positions immediately upon publication of its report, SOFI noted that the short seller stands to profit from its own misleading report.

“We have reviewed the full report and believe it is designed to deceive investors,” said the financial services company.

SoFi assured investors about the integrity of its financial reporting. The company highlighted that it is a highly regulated public company following U.S. GAAP and SEC rules, with strong internal controls.

Is SOFI a Good Stock to Buy Now?

Despite SoFi’s solid financials and impressive member growth, several analysts are cautious on the stock due to valuation concerns. Overall, Wall Street has a Hold consensus rating on SOFI stock based on seven Holds, five Buys, and three Sells. The average SOFI stock price target of $25.96 indicates 49.5% upside potential.

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