Insiders At Flywire Sold US$4.5m In Stock, Alluding To Potential Weakness

FLYWIRE CORP +3.24% Pre

FLYWIRE CORP

FLYW

18.33

18.33

+3.24%

0.00% Pre

The fact that multiple Flywire Corporation (NASDAQ:FLYW) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Flywire

The Last 12 Months Of Insider Transactions At Flywire

The Independent Director, Alex Finkelstein, made the biggest insider sale in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$29.50 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$22.17). So it may not tell us anything about how insiders feel about the current share price.

In the last year Flywire insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:FLYW Insider Trading Volume January 30th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Flywire Have Sold Stock Recently

The last quarter saw substantial insider selling of Flywire shares. In total, insiders dumped US$514k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Flywire Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Flywire insiders own 2.5% of the company, worth about US$64m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Flywire Tell Us?

Insiders haven't bought Flywire stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Flywire has 2 warning signs we think you should be aware of.

Of course Flywire may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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