Michael Massaro, the Chief Executive Officer of Flywire Corp (NASDAQ:FLYW), has recently sold a portion of his company shares, according to the latest SEC filings. The transaction, which took place on June 3, 2024, involved the sale of 8,698 shares at a price of $16.949 per share, totaling over $147,422.
The sale was conducted 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 receiving stock-based compensation, as it allows them to meet their tax liabilities without the need for an out-of-pocket cash payment.
Following this transaction, Massaro still retains a significant stake in the company, with 1,754,513 shares held directly. Additionally, there are 307,548 shares held indirectly through the Michael P. Massaro 2021 Irrevocable Trust. It is important to note that Massaro disclaims beneficial ownership of the indirectly held shares, except to the extent of his pecuniary interest.
Investors often monitor the buying and selling activities of company insiders like CEOs, as these can be indicators of the executive's confidence in the company's future prospects. However, in this case, the sale appears to be a routine financial move related to compensation rather than a reflection of Massaro's outlook on Flywire's performance.
Flywire Corp, headquartered in Boston, Massachusetts, specializes in providing global payment and receivables solutions across different industries, including education, healthcare, and travel.
Massaro's transaction was disclosed in compliance with SEC regulations, and the details are publicly available for investors' scrutiny. The remaining holdings demonstrate his ongoing vested interest in the success and growth of Flywire Corp.
In other recent news, Flywire, a leading global payment platform, reported a solid financial performance for the first quarter of 2024, with revenue reaching $110.2 million, marking a 24% year-over-year increase. The company's adjusted gross profit rose to $71.9 million, up by 20% year-over-year, and its adjusted EBITDA nearly doubled to $13.2 million from Q1 2023. Flywire processed $7 billion in payments during the quarter, showing a 23% growth.
In addition to these financial highlights, Citi reaffirmed its positive stance on Flywire, maintaining a Buy rating and a $33.00 price target on the company's stock. The firm's endorsement follows recent investor meetings in London with Flywire's management team.
Citi's analyst noted that despite a lower revenue outlook impacted by foreign exchange factors, they anticipate that Flywire's stock will establish a foundation for potential upside. The analyst also highlighted Flywire's valuation, noting that the stock is trading at an attractive profit multiple, with a low-teens adjusted EBITDA multiple for 2025 compared to a projected compound annual growth rate of over 60% for the period from 2023 to 2025. These are recent developments in the company's financial trajectory and market valuation.
InvestingPro Insights
As Flywire Corp's CEO Michael Massaro adjusts his holdings, investors are keeping an eye on the company's financial health and market performance. According to InvestingPro data, Flywire Corp has a market capitalization of $2.14 billion. Despite a challenging period, with the stock experiencing a significant drop of 36.91% over the last three months, analysts have highlighted some potentially positive trends. The company's net income is expected to grow this year, an optimistic sign for stakeholders monitoring the company's profitability.
InvestingPro Tips reveal that Flywire's liquid assets are currently sufficient to cover its short-term obligations, which is a reassuring signal for the company's liquidity position. Additionally, while the company has not been profitable over the last twelve months, analysts predict that Flywire will turn a profit this year. It's also worth noting that Flywire does not pay a dividend, which could be a factor for income-focused investors to consider.
With these insights in mind, investors may want to delve deeper into Flywire's financials and forecasts. For those looking for more detailed analysis, there are 7 additional InvestingPro Tips available for Flywire Corp at Investing.com/pro/FLYW. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and gain access to exclusive metrics and professional insights that could help in making more informed investment decisions.
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