Expensify, Inc. (NASDAQ:EXFY) CEO Barrett David Michael has sold a total of $75,000 worth of company stock, according to recent filings with the Securities and Exchange Commission. The transactions occurred over a span of three days, with shares being sold at prices ranging from $1.40 to $1.45.
The filings indicate that on June 11, 2024, the CEO sold 17,496 shares at an average price of $1.40. The following day, an additional 16,970 shares were sold at an average price of $1.45. The sales continued on June 13, with 18,500 shares being sold at $1.40 each. These transactions were made under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which was adopted by Michael on December 15, 2023.
After these transactions, CEO Barrett David Michael retains a substantial number of shares in the company. The sales were executed indirectly through Barrett Trust LLC, where Michael has investment and voting power, and serves as a trustee for the Barrett Family Trust.
Investors often keep a close eye on insider transactions as they provide insights into executives' perspectives on the company's current valuation and future prospects. The detailed information regarding the number of shares sold at each separate price within the specified ranges can be provided by the reporting person upon request.
Expensify, Inc. specializes in prepackaged software services and has its headquarters in Portland, Oregon. The company has been incorporated in Delaware and operates within the technology sector.
In other recent news, Expensify Inc. reported a robust start to the year in its first-quarter earnings call. The company's CFO, Ryan Schaffer, announced a significant 242% increase in free cash flow, reaching $5.2 million. The quarter's revenues were reported at $33.5 million, largely driven by an average of 688,000 paid members. A notable 57% year-on-year increase in Expensify card usage contributed $3.5 million to the net interchange.
Expensify's CEO, David Barrett, outlined a strategy targeting the untapped market of VSP and SMB, leveraging a model to convert customers into lead generators. The company is set to reclassify interchange from a contract expense to revenue, anticipating a 20% increase by year-end.
In terms of future plans, Expensify aims to capitalize on this strategy through monthly subscriptions and is investing in SEO, global reimbursement, and product development to support this initiative. These are among the recent developments that investors should be aware of.
InvestingPro Insights
As Expensify, Inc.'s CEO Barrett David Michael divests a portion of his holdings, investors may be looking for a broader context to interpret the health and future of the company. Recent metrics from InvestingPro provide some insights into the company's financial status and market performance.
Expensify's market capitalization currently stands at $126.28 million, reflecting the company's valuation in the eyes of the market. Despite this valuation, the company holds a negative P/E ratio of -3.61, indicating that it is not currently profitable. This aligns with one of the InvestingPro Tips which highlights that Expensify has not been profitable over the last twelve months. However, it is worth noting that analysts predict the company will become profitable this year, which could potentially signal a turning point for the company if these forecasts materialize.
The company's stock performance has shown significant volatility, trading near its 52-week low, which could be a point of interest for value investors or those looking for a potential turnaround story. Additionally, the price has fallen by -79.32% over the past year, which is a considerable decline and may factor into the CEO's decision to sell shares at this time.
InvestingPro also offers a comprehensive list of additional tips, including the fact that Expensify holds more cash than debt on its balance sheet and that liquid assets exceed short term obligations. These points suggest a degree of financial stability despite the challenges reflected in the stock price performance. For those interested in a deeper dive, there are 13 additional InvestingPro Tips available at https://www.investing.com/pro/EXFY, which can provide further guidance on the company's stock. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering even more valuable insights into your investment decisions.
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