Flywire Corp's (NASDAQ:FLYW) President and COO, Rob Orgel, recently sold 3,824 shares of the company's common stock. The transaction took place on September 5, 2024, and was executed at an average price of $17.314 per share, totaling approximately $66,208.
The sale was conducted automatically to cover tax withholding obligations related to the settlement of certain time-based restricted stock unit awards. Following the sale, Orgel continues to hold 473,648 shares of Flywire Corp, indicating a strong ongoing investment in the company's future.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's performance and potential. In this case, the transaction appears to be a routine part of compensation and tax planning rather than a reflection of Orgel's outlook on Flywire's valuation or business prospects.
Flywire Corp, headquartered in Boston, Massachusetts, specializes in providing global payment and receivables solutions for businesses and institutions. This recent transaction demonstrates the normal course of employee stock compensation and the subsequent tax-related sales that can occur in the lifecycle of stock ownership for corporate executives.
In other recent news, Flywire Corporation has reported a 26% year-over-year increase in revenue for the second quarter of 2024, reaching $99.9 million, excluding ancillary services. The company's adjusted gross profit mirrored this growth, hitting $63.4 million. Additionally, Flywire's adjusted EBITDA rose by $5.9 million year-over-year to $5.8 million. These recent developments also include the acquisition of Invoiced, a SaaS platform for B2B accounts receivable, and the initiation of a $150 million share buyback program.
Seaport Global Securities has maintained a Buy rating on Flywire, forecasting different revenue and EBITDA outcomes for the company in 2025. The firm's analysis includes a Base Case, Bear Case, and Bull Case, each exploring varying revenue and EBITDA possibilities for Flywire. According to Seaport, Flywire's robust growth outside of Canada, which forms the majority of its overall revenue, is a critical factor for investors.
Despite facing challenges in the Canadian market, Flywire exceeded its adjusted EBITDA guidance and increased its full-year adjusted EBITDA margin expectations. The company remains optimistic about long-term growth potential in Canada and plans to leverage global distribution capabilities with the Invoiced acquisition.
InvestingPro Insights
Flywire Corp's (NASDAQ:FLYW) executive sale of shares comes at a time when the company's financial metrics are painting a mixed picture. According to InvestingPro data, the company's market capitalization stands at $2.16 billion, with a notably high negative P/E ratio over the last twelve months as of Q2 2024, suggesting that investors have had concerns about profitability. However, analysts are predicting a more favorable turn, with net income expected to grow this year, which could be a sign of potential recovery and a more positive outlook for Flywire.
On the liquidity front, Flywire seems to be in a commendable position, with liquid assets that exceed short-term obligations. This indicates that the company has a solid footing to cover its immediate liabilities, an important factor for investors considering the stability of a company. Additionally, Flywire's revenue growth over the last twelve months as of Q2 2024 is reported at 27.09%, showcasing the company's ability to increase its earnings and hinting at a potentially bright future if this trend continues.
InvestingPro Tips for Flywire Corp also highlight that the stock has taken a significant hit over the last six months, with a price total return of -35.3%. Despite this downturn, the company does not pay a dividend to shareholders, which could be a consideration for those looking for income-generating investments. For more detailed insights, there are additional tips available on InvestingPro, offering a deeper dive into Flywire's financial health and stock performance.
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