This Insider Has Just Sold Shares In Expensify

We wouldn't blame Expensify, Inc. (NASDAQ:EXFY) shareholders if they were a little worried about the fact that David Barrett, the Founder recently netted about US$1.5m selling shares at an average price of US$2.34. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Expensify

Expensify Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Steve McLaughlin bought US$1.8m worth of shares at a price of US$1.82 per share. We do like to see buying, but this purchase was made at well below the current price of US$2.32. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$5.2m for 3.08m shares. On the other hand they divested 2.28m shares, for US$5.6m. Over the last year we saw more insider selling of Expensify shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 34% of Expensify shares, worth about US$69m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Expensify Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Expensify, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Expensify has 3 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Expensify may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.