Bullish Expensify Insiders Loaded Up On US$11.0m Of Stock
Multiple insiders secured a larger position in Expensify, Inc. (NASDAQ:EXFY) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Expensify
The Last 12 Months Of Insider Transactions At Expensify
In fact, the recent purchase by insider Steve McLaughlin was not their only acquisition of Expensify shares this year. They previously made an even bigger purchase of US$3.0m worth of shares at a price of US$6.02 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.67). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$11m for 3.13m shares. On the other hand they divested 1.24m shares, for US$4.4m. In total, Expensify insiders bought more than they sold over the last year. The average buy price was around US$3.53. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Expensify Insiders Bought Stock Recently
At Expensify,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$2.4m on shares. But insiders only sold shares worth US$1.6m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of Expensify
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Expensify insiders own about US$50m worth of shares. That equates to 35% 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?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Expensify we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Expensify. Case in point: We've spotted 3 warning signs for Expensify you should be aware of.
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.
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.
