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.
Expensify Insider Transactions Over The Last Year
The insider Steve McLaughlin made the biggest insider purchase in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$1.82 each. 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.
Over the last year, we can see that insiders have bought 3.08m shares worth US$5.2m. But they sold 2.28m shares for US$5.6m. All up, insiders sold more shares in Expensify than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Expensify insiders own about US$69m worth of shares. That equates to 34% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Expensify Insiders?
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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Expensify (including 1 which can't be ignored).
Of course Expensify may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
