Flywire Corp's (NASDAQ:FLYW) Chief Technology Officer, David R. King, has recently sold a portion of his company stock, according to a new SEC filing. On September 5, King sold 3,504 shares of Flywire's voting common stock at a price of $17.314 per share, totaling over $60,668.
The transaction was carried out automatically to cover tax withholding obligations related to the settlement of certain time-based restricted stock unit awards. Following this sale, King still holds a significant number of shares in the company, with 616,680 shares owned directly and an additional 276,204 shares owned indirectly through a revocable trust.
It should be noted that King disclaims beneficial ownership of the indirectly held shares, which are held by the D R King Revocable Trust dated October 5, 2007. He is a trustee of this trust, but the filing indicates that this does not constitute an admission of beneficial ownership for Section 16 or any other purposes, except to the extent of his pecuniary interest.
Investors often monitor insider transactions such as these for insights into executive sentiment toward their company's stock. Flywire Corp, a leader in business services, has thus seen a recent transaction from one of its top executives.
In other recent news, Flywire Corporation reported a 26% year-over-year increase in revenue to $99.9 million for the second quarter of 2024. The company's adjusted gross profit mirrored this growth, reaching $63.4 million, and its adjusted EBITDA rose by $5.9 million year-over-year to $5.8 million. These recent developments include the acquisition of Invoiced, a SaaS platform for B2B accounts receivable, and the initiation of a $150 million share buyback program. Despite facing challenges in the Canadian market, Flywire exceeded its adjusted EBITDA guidance and increased its full-year adjusted EBITDA margin expectations.
Seaport Global Securities has maintained a Buy rating on Flywire, with a steady 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. Seaport Global Securities also encourages investors to consider Flywire's robust growth outside of Canada, which forms the majority of Flywire's overall revenue.
Flywire remains optimistic about long-term growth potential in Canada and plans to leverage global distribution capabilities with the Invoiced acquisition. The company's strategic growth pillars have led to a pipeline growth exceeding 50% YoY, particularly in the travel vertical which saw over 55% growth YoY. These are among the recent developments in the company.
InvestingPro Insights
Amidst the news of Flywire Corp's (NASDAQ:FLYW) Chief Technology Officer, David R. King, selling shares, investors are assessing the company's financial health and future prospects. According to InvestingPro data, Flywire currently has a market capitalization of $2.16 billion. Despite a challenging period with the stock price taking a significant hit over the last six months, declining by 35.3%, analysts following the company have provided some optimistic forecasts.
An InvestingPro Tip highlights that Flywire's net income is expected to grow this year, suggesting potential for recovery and profitability in the near term. This is further supported by another tip indicating that analysts predict the company will be profitable this year, which could signal a turnaround from its current non-profitable status over the last twelve months. Moreover, the company's liquid assets exceed its short-term obligations, which may provide some reassurance to investors concerned about the company's financial resilience.
From a financial metrics standpoint, Flywire has demonstrated a robust revenue growth of 27.09% over the last twelve months as of Q2 2024, with a gross profit margin of 63.49%, reflecting a strong ability to convert sales into profit. However, the company's P/E ratio remains negative at -257.46, reflecting market concerns over its earnings potential in the short term. It's also worth noting that Flywire does not pay a dividend, which may influence the investment decisions of income-focused shareholders.
For investors seeking more in-depth analysis and additional tips on Flywire Corp, there are further insights available on InvestingPro, which currently lists a total of six InvestingPro Tips for FLYW. These may provide valuable context for the company's future performance and stock valuation.
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