Flywire Corp CTO sells over $60k in company stock

In a recent transaction, David R. King, the Chief Technology Officer of Flywire Corp (NASDAQ:FLYW), sold 3,353 shares of the company's voting common stock. The sale was executed at a price of $18.043 per share, resulting in a total transaction value exceeding $60,498.

The sale, which took place on September 3, 2024, was disclosed in a mandatory filing with the Securities and Exchange Commission. According to the filing, the shares were sold automatically to cover tax withholding obligations related to the settlement of certain time-based restricted stock unit awards. This is a common practice for executives who receive stock-based compensation, as it allows them to meet tax liabilities without having to provide cash out of pocket.

Following the transaction, King's direct holdings in Flywire Corp's stock amounted to 620,184 shares. Additionally, it's worth noting that King has an indirect interest in 276,204 shares held by the D R King Revocable Trust, as disclosed in the footnotes of the filing. However, King disclaims beneficial ownership of these shares, except to the extent of his pecuniary interest.

Flywire Corp, headquartered in Boston, Massachusetts, operates in the business services sector, providing global payment and receivables solutions. The company's stock is traded on the NASDAQ, and these transactions are part of the regular financial disclosures required by executives and significant shareholders.

In other recent news, Flywire Corporation reported a 26% year-over-year increase in revenue, excluding ancillary services, to $99.9 million for the second quarter of 2024. The adjusted gross profit mirrored this growth, reaching $63.4 million, while adjusted EBITDA rose by $5.9 million year-over-year to $5.8 million. These financial results were accompanied by 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, with a steady price target of $26.00. The firm has considered a range of scenarios for Flywire's performance next year, including a Base Case, Bear Case, and Bull Case, each exploring different revenue and EBITDA possibilities for Flywire in 2025.

Despite challenges in the Canadian market, Flywire exceeded its adjusted EBITDA guidance and increased its full-year adjusted EBITDA margin expectations. The company expects its revenue and adjusted EBITDA to continue rising in 2024 and remains optimistic about long-term growth potential in Canada. These are recent developments that highlight the company's commitment to driving long-term shareholder value.

InvestingPro Insights

As we delve into the financials of Flywire Corp (NASDAQ:FLYW), a closer look at the company's real-time metrics reveals a nuanced picture. With a market capitalization of $2.19 billion, the company stands as a significant player in the business services sector. Despite a negative P/E ratio of -258.81, indicating that investors are currently valuing the company's growth prospects rather than its current earnings, there is a sense of optimism as analysts predict the company will turn profitable this year, according to an InvestingPro Tip. This forward-looking sentiment is supported by the company's substantial revenue growth over the last twelve months, clocking in at 27.09%.

Moreover, Flywire Corp's gross profit margin remains strong at 63.49%, suggesting that the company is effectively managing its cost of goods sold and maintaining profitability at the gross level. However, it's important to note that the company has not been profitable over the last twelve months, as reflected in the adjusted operating income margin of -4.62%. This could be a point of concern for potential investors, considering the company's stock price has experienced a significant decline of 34.42% over the past six months.

InvestingPro Tips further indicate that Flywire's liquid assets exceed its short-term obligations, providing some financial stability in the near term. However, it is also noted that the company does not pay a dividend to shareholders, which could influence investment decisions for those seeking regular income streams from their investments. For investors seeking more in-depth analysis and additional tips on Flywire Corp, there are 5 more InvestingPro Tips available at InvestingPro, offering a comprehensive understanding of the company's financial health and future prospects.

With the next earnings date set for November 5, 2024, stakeholders and potential investors will be keenly watching to see if the company's strategic initiatives will lead to the anticipated profitability and if the current market valuation aligns with the InvestingPro Fair Value of $19.84 USD.

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