ExlService (NASDAQ:EXLS) Sets New 1-Year Low – Time to Sell?

ExlService Holdings, Inc. (NASDAQ:EXLS)’s share price reached a new 52-week low during mid-day trading on Thursday . The stock traded as low as $25.15 and last traded at $25.22, with a volume of 2297614 shares traded. The stock had previously closed at $26.34.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Barrington Research reiterated an “outperform” rating and set a $40.00 target price on shares of ExlService in a research note on Thursday. Weiss Ratings raised ExlService from a “sell (d+)” rating to a “hold (c-)” rating in a report on Monday, June 15th. JPMorgan Chase & Co. upped their price objective on ExlService from $42.00 to $43.00 and gave the stock an “overweight” rating in a research report on Thursday, April 30th. Finally, TD Cowen reiterated a “buy” rating on shares of ExlService in a report on Wednesday, June 17th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $41.50.

ExlService Price Performance

The stock’s 50-day moving average is $29.24 and its 200 day moving average is $33.41. The company has a debt-to-equity ratio of 0.53, a quick ratio of 2.66 and a current ratio of 2.66. The stock has a market capitalization of $3.97 billion, a PE ratio of 16.55, a P/E/G ratio of 1.06 and a beta of 0.82.

ExlService (NASDAQ:EXLS) last announced its quarterly earnings results on Tuesday, April 28th. The business services provider reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.05. The firm had revenue of $570.35 million during the quarter, compared to analysts’ expectations of $557.67 million. ExlService had a net margin of 11.66% and a return on equity of 28.50%. ExlService’s quarterly revenue was up 13.8% compared to the same quarter last year. During the same period in the previous year, the company earned $0.48 earnings per share. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. As a group, equities analysts expect that ExlService Holdings, Inc. will post 1.8 earnings per share for the current year.

ExlService announced that its board has authorized a stock buyback plan on Tuesday, March 17th that permits the company to repurchase $125.00 million in shares. This repurchase authorization permits the business services provider to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its shares are undervalued.

Insider Transactions at ExlService

In related news, EVP Ajay Ayyappan sold 5,093 shares of the company’s stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $29.11, for a total value of $148,257.23. Following the completion of the sale, the executive vice president directly owned 48,994 shares of the company’s stock, valued at $1,426,215.34. This represents a 9.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Vikas Bhalla sold 12,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $30.22, for a total value of $362,640.00. Following the transaction, the insider owned 153,295 shares in the company, valued at $4,632,574.90. This represents a 7.26% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.66% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ExlService

A number of institutional investors have recently modified their holdings of EXLS. Fox Run Management L.L.C. purchased a new stake in shares of ExlService in the fourth quarter valued at about $1,455,000. Nordea Investment Management AB purchased a new position in shares of ExlService during the fourth quarter worth about $23,570,000. UBS Group AG increased its position in ExlService by 103.6% in the 4th quarter. UBS Group AG now owns 1,091,714 shares of the business services provider’s stock valued at $46,332,000 after acquiring an additional 555,382 shares during the period. Aberdeen Group plc raised its stake in ExlService by 18.8% during the 4th quarter. Aberdeen Group plc now owns 562,437 shares of the business services provider’s stock valued at $23,870,000 after acquiring an additional 89,194 shares during the last quarter. Finally, Fort Washington Investment Advisors Inc. OH raised its stake in ExlService by 18.5% during the 4th quarter. Fort Washington Investment Advisors Inc. OH now owns 693,008 shares of the business services provider’s stock valued at $29,411,000 after acquiring an additional 108,398 shares during the last quarter. 92.92% of the stock is owned by institutional investors and hedge funds.

About ExlService

ExlService Holdings, Inc (NASDAQ: EXLS) is a global operations management and analytics company that partners with clients in insurance, healthcare, banking, and financial services to drive digital transformation and operational excellence. The firm delivers analytics-driven solutions and business process outsourcing services, including claims adjudication, finance and accounting, data management, and customer service support. ExlService combines domain expertise with advanced analytics, artificial intelligence, and automation technologies to help organizations optimize processes, enhance customer experiences, and manage risk.

Founded in 1999 and headquartered in New York City, ExlService has grown through a mix of organic expansion and strategic acquisitions, earning recognition for its data analytics capabilities and industry-specific knowledge.