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$705k selling shares at an average price of US$1.78. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Expensify

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$3.0m worth of shares at a price of US$6.02 each. That means that an insider was happy to buy shares at above the current price of US$1.84. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 3.31m shares for US$11m. But insiders sold 1.70m shares worth US$5.3m. In the last twelve months there was more buying than selling by Expensify insiders. The average buy price was around US$3.43. These transactions suggest that insiders have considered the current price attractive. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Expensify Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of Expensify shares, worth about US$55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other 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. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 4 warning signs with Expensify and understanding them should be part of your investment process.

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.

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.