Michael Massaro, the Chief Executive Officer of Flywire Corp (NASDAQ:FLYW), has recently sold a portion of his holdings in the company. The transaction, which took place on September 5, 2024, involved the sale of 7,646 shares of Flywire's voting common stock at a price of $17.314 per share, resulting in a total transaction value of approximately $132,382.
The sale was executed automatically to cover tax withholding obligations related to the settlement of certain time-based restricted stock unit awards. Following the sale, Massaro still holds a significant number of shares in the company, with 1,731,705 shares remaining in his direct possession.
In addition to his direct holdings, there are shares held indirectly by the Michael P. Massaro 2021 Irrevocable Trust. Massaro's spouse is a trustee of this trust, which owns 307,548 shares of Flywire's voting common stock. It's important to note that Massaro disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.
Investors often monitor insider transactions as they can provide insights into an executive's confidence in the company's future prospects. However, it is not uncommon for executives to sell shares for personal financial planning reasons, such as diversification, liquidity, or meeting tax obligations.
Flywire Corp, headquartered in Boston, Massachusetts, specializes in business services and operates under the trade and services sector. The company, formerly known as peerTransfer Corp, is incorporated in Delaware and has a fiscal year ending on December 31.
In other recent news, Flywire Corporation reported a 26% year-over-year increase in revenue for the second quarter of 2024, hitting $99.9 million, excluding ancillary services. The adjusted gross profit mirrored this growth, reaching $63.4 million, while the adjusted EBITDA rose by $5.9 million year-over-year to $5.8 million. In addition, the company announced the acquisition of Invoiced, a SaaS platform for B2B accounts receivable, and initiated a $150 million share buyback program. Despite facing challenges in the Canadian market, Flywire exceeded its adjusted EBITDA guidance and raised its full-year adjusted EBITDA margin expectations.
Seaport Global Securities maintained a Buy rating on Flywire, with a consistent price target of $26.00. The firm's analysis includes a Base Case, Bear Case, and Bull Case, each exploring different revenue and EBITDA possibilities for Flywire in 2025. The company's international business segments, which form the majority of Flywire's overall revenue, are expanding rapidly, deemed crucial for the company's future stock valuation.
These are recent developments that do not reflect the company's long-term prospects. Flywire remains optimistic about its long-term growth potential in Canada and plans to leverage global distribution capabilities with the Invoiced acquisition. The company also expects its revenue and adjusted EBITDA to continue rising in 2024.
InvestingPro Insights
As Flywire Corp's (NASDAQ:FLYW) CEO Michael Massaro adjusts his holdings in the company, investors are keen to understand the underlying financial health and future prospects of Flywire. According to recent data and analysis from InvestingPro, the company's net income is expected to grow this year. This could signal a positive outlook for the company's profitability and potentially justify the confidence executives like Massaro have in the firm's trajectory.
Another encouraging sign comes from the company's liquidity position. InvestingPro Tips highlight that Flywire's liquid assets exceed its short-term obligations, suggesting that the company is in a good position to meet its immediate financial liabilities. This is a crucial metric for investors assessing the risk profile of a company, especially in the volatile trade and services sector in which Flywire operates.
InvestingPro Data further reveals that Flywire has experienced a revenue growth of 27.09% in the last twelve months as of Q2 2024, with a gross profit margin of 63.49%. Despite not being profitable over the last twelve months and the stock taking a significant hit over the last six months, analysts predict that the company will be profitable this year, which could be a turnaround point for investor sentiment. The company does not pay a dividend, which may be reflective of its focus on reinvesting earnings back into growth and expansion efforts.
For those interested in a deeper dive into Flywire's financials and stock performance, there are additional InvestingPro Tips available, offering a comprehensive analysis that can help investors make more informed decisions. Visit the dedicated page for Flywire on InvestingPro for further insights.
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