Expensify, Inc. (NASDAQ:EXFY) Sees Significant Drop in Short Interest

Key Points

• Short interest in Expensify fell sharply in June, dropping 66.7% to 1.49 million shares as of June 30, which amounts to about 2.0% of shares outstanding.
• Recent analyst sentiment remains mixed but cautious: Weiss Ratings and Wall Street Zen both upgraded the stock, yet MarketBeat shows an average rating of “Reduce” with a target price of $2.50.
• Insiders have been selling shares, including the CEO and a director, while the company also recently reported a Q1 EPS miss and slightly lower-than-expected revenue.

Expensify, Inc. (NASDAQ:EXFY - Get Free Report) was the recipient of a significant decrease in short interest during the month of June. As of June 30th, there was short interest totaling 1,491,932 shares, a decrease of 66.7% from the June 15th total of 4,478,511 shares. Approximately 2.0% of the company's shares are sold short. Based on an average daily trading volume, of 3,696,655 shares, the days-to-cover ratio is currently 0.4 days.

Analyst Ratings Changes

A number of research analysts have recently commented on EXFY shares. Weiss Ratings upgraded shares of Expensify from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, July 1st. Wall Street Zen upgraded shares of Expensify from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Expensify has an average rating of "Reduce" and an average target price of $2.50.

Insider Buying and Selling

In related news, Director Divo Carlos Eduardo Alvarez sold 30,728 shares of the firm's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $1.01, for a total transaction of $31,035.28. Following the completion of the sale, the director directly owned 254,780 shares of the company's stock, valued at approximately $257,327.80. This trade represents a 10.76% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David Michael Barrett sold 30,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $1.15, for a total value of $34,500.00. Following the sale, the chief executive officer directly owned 1,228,480 shares of the company's stock, valued at $1,412,752. This represents a 2.38% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 100,728 shares of company stock worth $109,235. Insiders own 11.65% of the company's stock.

Institutional Investors Weigh In On Expensify

Large investors have recently modified their holdings of the business. Abel Hall LLC bought a new position in shares of Expensify during the fourth quarter valued at approximately $25,000. SG Americas Securities LLC bought a new position in Expensify in the fourth quarter worth approximately $27,000. Franklin Resources Inc. purchased a new stake in Expensify during the third quarter worth $34,000. Balyasny Asset Management L.P. lifted its holdings in Expensify by 126.1% during the fourth quarter. Balyasny Asset Management L.P. now owns 31,615 shares of the company's stock worth $48,000 after buying an additional 17,634 shares during the period. Finally, Prentiss Smith & Co. Inc. bought a new stake in Expensify during the 4th quarter valued at $49,000. Institutional investors own 68.42% of the company's stock.

Expensify Price Performance

EXFY opened at $1.89 on Monday. The stock's fifty day moving average is $1.34 and its two-hundred day moving average is $1.22. The company has a market capitalization of $159.29 million, a P/E ratio of -8.22 and a beta of 1.68. Expensify has a 52 week low of $0.69 and a 52 week high of $2.36.

Expensify (NASDAQ:EXFY - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.02) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.02 by ($0.04). The firm had revenue of $33.97 million for the quarter, compared to the consensus estimate of $34.25 million. Expensify had a negative return on equity of 15.26% and a negative net margin of 14.68%.

About Expensify

Expensify, traded on NASDAQ under the ticker EXFY, is a software-as-a-service (SaaS) company specializing in automated expense management and reporting. Its flagship platform enables employees to capture receipts via mobile app or email, automatically extract expense details through optical character recognition (OCR) and artificial intelligence, and submit streamlined expense reports. The solution is designed to eliminate manual data entry and reduce approval cycle times, serving a broad range of industries from small businesses to large enterprises.

Founded in 2008 by entrepreneur David Barrett, Expensify has grown from a simple receipt-scanning app into a comprehensive spend management suite.

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