Expensify, Inc. (NASDAQ:EXFY) CEO David Michael Barrett recently sold a significant portion of his holdings in the company, according to a new SEC filing. Over a series of transactions, Barrett sold shares totaling approximately $200,353. The sales occurred at prices ranging from $1.69 to $1.78.
The transactions, which took place from May 13 to May 22, 2024, were executed under a pre-arranged trading plan that Barrett had adopted on December 15, 2023. Such plans allow insiders to sell shares over a predetermined period to avoid concerns about transactions based on non-public information.
Throughout the reported period, the CEO sold shares on multiple dates. On May 13, Barrett sold 14,091 shares at a weighted average price of $1.78. The following day, 14,340 shares were sold at an average of $1.75 per share. On May 15, the CEO sold another 14,346 shares, this time at an average price of $1.75. The sales continued with 14,650 shares on May 16 at $1.71 per share, 14,805 shares on May 17 at $1.69, 14,643 shares on May 20 at $1.70, 14,290 shares on May 21 at $1.76, and finally, 14,680 shares on May 22 at an average price of $1.70.
After these transactions, Barrett still retains a substantial number of shares in Expensify. The SEC filing indicates that following the last sale, Barrett owned 790,404 shares directly. Additionally, by the nature of the ownership disclosed, some shares are held indirectly through Barrett Trust LLC, where Barrett has investment and voting power, and the Barrett Family Trust, for which he serves as trustee.
Investors often monitor insider sales for insights into executive confidence in the company's future prospects. However, sales under a 10b5-1 trading plan, such as Barrett's, are scheduled in advance and are less likely to reflect immediate views on the company's outlook.
For those interested in Expensify's stock movement, it's worth noting that the company operates in the prepackaged software industry and is headquartered in Portland, Oregon.
InvestingPro Insights
As investors digest the news of CEO David Michael Barrett's recent stock sales of Expensify, Inc. (NASDAQ:EXFY), it's crucial to consider the financial health and market performance of the company. According to InvestingPro data, Expensify holds a market capitalization of 148.77 million USD, indicating its size within the prepackaged software industry. Notably, the company's P/E ratio stands at -3.56, reflecting its current earnings relative to its share price. The adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly lower at -3.79, further highlighting the company's earnings challenges.
InvestingPro Tips suggest that Expensify's financial position includes more cash than debt on its balance sheet, which is a positive sign of liquidity and financial stability. Furthermore, the company's liquid assets exceed its short-term obligations, providing it with a cushion to manage short-term liabilities. These insights are particularly relevant for investors considering the context of the CEO's stock sales and the company's future financial planning.
However, it's important to note that analysts have revised their earnings downwards for the upcoming period, and they anticipate a sales decline in the current year. Additionally, while the company has not been profitable over the last twelve months, analysts predict that Expensify will turn a profit this year. This mixed outlook suggests that while there are positive aspects to the company's financial health, challenges remain that could impact its performance.
For investors looking for a more comprehensive analysis of Expensify, there are additional InvestingPro Tips available at https://www.investing.com/pro/EXFY. Using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to a wealth of expert insights that can inform investment decisions.
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