Expensify, Inc. (NASDAQ:EXFY) CEO David Michael Barrett has sold a total of 50,715 shares of the company's Class A Common Stock over a span of three days, with transactions totaling over $74,000. The sales were conducted at weighted average prices ranging from $1.44 to $1.49 per share.
On April 15, Barrett sold 17,190 shares at an average price of $1.44, with sales prices ranging from $1.42 to $1.44. The following day, on April 16, he sold another 16,950 shares, this time at a slightly higher average price of $1.45, with individual transactions priced between $1.43 and $1.47. Finally, on April 17, Barrett completed the series of transactions by selling 16,575 shares at an average price of $1.49, with prices varying from $1.46 to $1.51 per share.
These sales were executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which Barrett had adopted on December 15, 2023. Rule 10b5-1 plans allow company insiders to establish pre-planned transactions at a time when they are not in possession of material non-public information, providing a defense against allegations of insider trading.
Despite the series of sales, Barrett maintains a substantial stake in Expensify. Following the transactions, he holds 1,132,249 shares of Expensify's Class A Common Stock indirectly through Barrett Trust LLC, for which he serves as the manager and trustee of the controlling member, the Barrett Family Trust.
Investors and followers of insider activity consider such transactions to be noteworthy, as they may reflect an executive's view on the company's current valuation and future prospects. However, it's also common for executives to sell shares for reasons that may not necessarily relate to their outlook on the company, such as diversifying their investment portfolio or meeting personal financial objectives.
Expensify, headquartered in Portland, Oregon, operates within the prepackaged software industry, providing expense management services for personal and business use.
InvestingPro Insights
As we delve into the financial health and market performance of Expensify, Inc. (NASDAQ:EXFY), certain metrics from InvestingPro stand out. With a market capitalization of $123.55 million, the company's valuation reflects its standing in the prepackaged software industry. Despite recent insider sales, Expensify's stock has seen significant price volatility, with a one-month price total return of -27.14%, underscoring the stock's poor performance over the last month. This aligns with one of the InvestingPro Tips, emphasizing that the stock has fared poorly over the recent period.
The company's financials reveal challenges, with a negative P/E ratio of -4.38, indicating that it was not profitable over the last twelve months. This is further highlighted by an operating income margin of -22.0% for the same period. However, it's worth noting that Expensify holds more cash than debt on its balance sheet, suggesting a level of financial stability and flexibility. This is a key detail from the InvestingPro Tips, which also highlight that the company's liquid assets exceed its short-term obligations.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, such as predictions on profitability and dividend policies. For example, analysts predict that Expensify will become profitable this year, offering a glimmer of potential upside. To access these insights and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With 9 more tips available, investors can gain a comprehensive understanding of Expensify's financial and market position.
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