ExlService Holdings, Inc. (NASDAQ:EXLS) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Wall Street sentiment is positive: ExlService Holdings has a consensus rating of “Moderate Buy” from six analysts, with an average 12-month price target of $41.50. Five analysts rate the stock a buy, while one has a sell rating.
• Recent insider selling: Two executives recently sold shares, including EVP Ajay Ayyappan and insider Vikas Bhalla, both through pre-arranged Rule 10b5-1 trading plans. Insiders now own 3.66% of the company.
• Solid quarterly results and buyback: ExlService beat first-quarter expectations with $0.58 EPS and revenue of $570.35 million, while revenue rose 13.8% year over year. The company also authorized a $125 million share repurchase program, signaling confidence in its stock.

Shares of ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the six analysts that are presently covering the firm, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation and five have assigned a buy recommendation to the company. The average 12-month price target among analysts that have issued a report on the stock in the last year is $41.50.

EXLS has been the subject of several recent research reports. Robert W. Baird set a $35.00 price target on shares of ExlService in a research report on Wednesday, February 25th. Needham & Company LLC reissued a "buy" rating and issued a $40.00 price target (down from $55.00) on shares of ExlService in a research report on Wednesday, February 25th. TD Cowen decreased their price target on shares of ExlService from $51.00 to $45.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Barrington Research set a $40.00 price target on shares of ExlService and gave the company an "outperform" rating in a research report on Thursday, April 30th. Finally, Weiss Ratings lowered shares of ExlService from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, May 29th.

Insiders Place Their Bets

In other news, EVP Ajay Ayyappan sold 5,093 shares of the firm's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $29.11, for a total value of $148,257.23. Following the sale, the executive vice president directly owned 48,994 shares in the company, valued at approximately $1,426,215.34. This trade represents a 9.42% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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 on Thursday, June 4th. The shares were sold at an average price of $30.22, for a total transaction of $362,640.00. Following the completion of the sale, the insider owned 153,295 shares in the company, valued at $4,632,574.90. The trade was a 7.26% decrease in their ownership of the stock. 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 currently owned by company insiders.

Institutional Investors Weigh In On ExlService

Hedge funds and other institutional investors have recently modified their holdings of the company. CENTRAL TRUST Co raised its holdings in shares of ExlService by 2,428.0% in the 3rd quarter. CENTRAL TRUST Co now owns 632 shares of the business services provider's stock valued at $28,000 after purchasing an additional 607 shares in the last quarter. Transamerica Financial Advisors LLC raised its holdings in shares of ExlService by 285.2% in the 4th quarter. Transamerica Financial Advisors LLC now owns 678 shares of the business services provider's stock valued at $29,000 after purchasing an additional 502 shares in the last quarter. True Wealth Design LLC raised its holdings in shares of ExlService by 57.2% in the 4th quarter. True Wealth Design LLC now owns 706 shares of the business services provider's stock valued at $30,000 after purchasing an additional 257 shares in the last quarter. Private Trust Co. NA raised its stake in ExlService by 56.2% during the 4th quarter. Private Trust Co. NA now owns 717 shares of the business services provider's stock worth $30,000 after acquiring an additional 258 shares in the last quarter. Finally, V Square Quantitative Management LLC acquired a new stake in ExlService during the 4th quarter worth $33,000. 92.92% of the stock is currently owned by institutional investors and hedge funds.

ExlService Price Performance

Shares of NASDAQ EXLS opened at $28.84 on Monday. The company has a 50 day simple moving average of $30.02 and a 200-day simple moving average of $34.31. The company has a market capitalization of $4.41 billion, a P/E ratio of 18.37, a P/E/G ratio of 1.22 and a beta of 0.83. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.66 and a quick ratio of 2.66. ExlService has a 1 year low of $26.82 and a 1 year high of $48.54.

ExlService (NASDAQ:EXLS - Get Free Report) last issued its quarterly earnings results on Tuesday, April 28th. The business services provider reported $0.58 EPS for the quarter, beating the consensus estimate of $0.53 by $0.05. ExlService had a net margin of 11.66% and a return on equity of 28.50%. The company had revenue of $570.35 million during the quarter, compared to analysts' expectations of $557.67 million. During the same quarter last year, the company posted $0.48 EPS. The firm's revenue was up 13.8% compared to the same quarter last year. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. On average, equities research analysts predict that ExlService will post 1.79 earnings per share for the current year.

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

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.

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