Expensify, Inc. (NASDAQ:EXFY) CEO David Michael Barrett recently engaged in transactions involving the company's Class A Common Stock, according to a new SEC filing. On March 11, Barrett sold a total of 7,311 shares at weighted average prices ranging from $2.08 to $2.20, culminating in over $15,000 in proceeds. These sales were primarily conducted to cover tax obligations related to shares awarded under the company's stock plan.
In the same filing, it was disclosed that Barrett also acquired 19,097 shares of Expensify's Class A Common Stock at no cost. This transaction was part of the Expensify, Inc. 2021 Stock Purchase and Matching Plan (SPMP), as indicated in the footnotes of the document. Following these transactions, Barrett's direct ownership in the company stands at 127,711 shares.
The shares sold by Barrett were part of a broader sale by the company's broker to cover taxes for shares awarded under the SPMP to certain Expensify employees. The CEO has offered to provide full information regarding the number of shares sold at each price point within the range upon request.
Additionally, the filing noted indirect ownership by Barrett through Barrett Trust LLC, which is managed by Barrett and controlled by the Barrett Family Trust. Barrett serves as the trustee for this entity, which holds 2,047,830 shares of Class A Common Stock.
Investors often monitor insider transactions for insights into executive confidence and company health. The recent activity by Expensify's CEO reflects a common practice of selling shares to satisfy tax liabilities following the vesting of equity awards.
InvestingPro Insights
As investors dissect the recent insider transactions by Expensify, Inc.'s (NASDAQ:EXFY) CEO, it's crucial to consider the broader financial context of the company. According to InvestingPro data, Expensify has a market capitalization of $182.34 million, which is reflective of the company's current valuation in the market. Despite challenging market conditions, Expensify's price to book ratio stands at 1.72 as of the last twelve months ending Q4 2023, suggesting that the stock may be reasonably valued in relation to the company's net assets.
One of the notable InvestingPro Tips for Expensify is that the company's liquid assets exceed its short-term obligations, which could provide some comfort to investors concerned about the company's ability to meet its immediate financial liabilities. Moreover, the stock price has experienced significant volatility, with a sharp 30.89% return over the last month, yet it has seen a precipitous 70.77% decline over the past year. This volatility is a critical factor for investors to consider, as it may affect both the risk and the potential return of the investment.
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