Multiple insiders secured a larger position in Expensify, Inc. (NASDAQ:EXFY) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Expensify

The Last 12 Months Of Insider Transactions At Expensify

In fact, the recent purchase by insider Steve McLaughlin was not their only acquisition of Expensify shares this year. They previously made an even bigger purchase of US$3.0m worth of shares at a price of US$6.02 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.67). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$11m for 3.13m shares. On the other hand they divested 1.24m shares, for US$4.4m. In total, Expensify insiders bought more than they sold over the last year. The average buy price was around US$3.53. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Expensify Insiders Bought Stock Recently

At Expensify,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$2.4m on shares. But insiders only sold shares worth US$1.6m. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of Expensify

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Expensify insiders own about US$50m worth of shares. That equates to 35% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.