We'd be surprised if Expensify, Inc. (NASDAQ:EXFY) shareholders haven't noticed that the Founder, David Barrett, recently sold US$303k worth of stock at US$3.81 per share. On the bright side, that sale was only 2.3% of their holding, so we doubt it's very meaningful, on its own.

Expensify Insider Transactions Over The Last Year

Notably, that recent sale by Founder David Barrett was not the only time they sold Expensify shares this year. They previously made an even bigger sale of -US$1.5m worth of shares at a price of US$2.34 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$3.60. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 19% of David Barrett's stake.

In the last twelve months insiders purchased 1.85m shares for US$2.8m. But insiders sold 1.42m shares worth US$3.2m. Over the last year we saw more insider selling of Expensify shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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. We usually like to see fairly high levels of insider ownership. It's great to see that Expensify insiders own 34% of the company, worth about US$109m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Expensify Insiders?

Insiders haven't bought Expensify stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Expensify.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.