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

Key Points

• Analysts remain constructive on EXLS: ExlService Holdings has a consensus rating of “Moderate Buy” from six analysts, with an average 1-year price target of $40.50.
• Recent earnings topped expectations: The company reported $0.58 EPS versus the $0.53 consensus estimate, and revenue rose 13.8% year over year to $570.35 million.
• Management is returning capital to shareholders: ExlService’s board authorized a $125 million share repurchase program, while insiders have also sold shares in recent transactions under pre-arranged trading plans.

Shares of ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) have earned an average recommendation of "Moderate Buy" from the six analysts that are presently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation and five have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $40.50.

EXLS has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. lifted their price target on shares of ExlService from $42.00 to $43.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Weiss Ratings downgraded shares of ExlService from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, June 30th. TD Cowen reissued a "buy" rating and set a $39.00 price objective (down from $45.00) on shares of ExlService in a report on Thursday. Finally, Barrington Research reissued an "outperform" rating and set a $40.00 price objective on shares of ExlService in a report on Thursday, June 25th.

Insider Transactions at ExlService

In related news, insider Vikas Bhalla sold 12,000 shares of ExlService stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $30.22, for a total value of $362,640.00. Following the completion of the transaction, the insider directly owned 153,295 shares in the company, valued at approximately $4,632,574.90. This trade represents a 7.26% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ajay Ayyappan sold 5,093 shares of the business's stock in a transaction dated Wednesday, May 20th. The shares were 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 approximately $1,426,215.34. This represents a 9.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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

A number of institutional investors have recently made changes to their positions in the company. Transamerica Financial Advisors LLC lifted its stake in ExlService by 285.2% during the fourth quarter. Transamerica Financial Advisors LLC now owns 678 shares of the business services provider's stock worth $29,000 after purchasing an additional 502 shares during the last quarter. True Wealth Design LLC increased its stake in ExlService by 57.2% during the fourth 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 during the last quarter. Private Trust Co. NA increased its stake in ExlService by 56.2% during the fourth quarter. Private Trust Co. NA now owns 717 shares of the business services provider's stock valued at $30,000 after purchasing an additional 258 shares during the last quarter. V Square Quantitative Management LLC acquired a new stake in shares of ExlService during the fourth quarter worth $33,000. Finally, Hantz Financial Services Inc. raised its holdings in shares of ExlService by 183.1% during the fourth quarter. Hantz Financial Services Inc. now owns 1,353 shares of the business services provider's stock worth $57,000 after purchasing an additional 875 shares during the period. 92.92% of the stock is currently owned by institutional investors.

ExlService Trading Up 0.8%

Shares of EXLS opened at $27.60 on Friday. ExlService has a one year low of $24.85 and a one year high of $47.11. The stock has a 50-day moving average price of $28.47 and a 200 day moving average price of $32.42. 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 company has a market capitalization of $4.22 billion, a P/E ratio of 17.58, a P/E/G ratio of 1.15 and a beta of 0.84.

ExlService (NASDAQ:EXLS - Get Free Report) last posted its quarterly earnings data on Tuesday, April 28th. The business services provider reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.53 by $0.05. ExlService had a return on equity of 28.50% and a net margin of 11.66%.The company had revenue of $570.35 million for the quarter, compared to the consensus estimate of $557.67 million. During the same period in the previous year, the business earned $0.48 EPS. ExlService's revenue for the quarter was up 13.8% compared to the same quarter last year. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. Sell-side analysts forecast that ExlService will post 1.8 EPS for the current fiscal year.

ExlService declared that its Board of Directors has approved a stock repurchase program on Tuesday, March 17th that authorizes the company to buyback $125.00 million in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 2.7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board believes its stock is undervalued.

ExlService Company Profile

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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