ExlService Holdings, Inc. (NASDAQ:EXLS) Sees Significant Increase in Short Interest

Key Points

• ExlService experienced a notable jump in short interest—up 18.5% to 8,764,243 shares as of Feb. 27, equal to 5.8% of shares sold short and a days-to-cover ratio of 3.5.
• Shares traded at $29.88 midday with a market cap of $4.67B, P/E of 19.4, 50/200-day moving averages of $35.40/$39.42, and a 12‑month range of $26.94–$48.79.
• Institutional ownership is very high at 92.92% with large increases by funds like Invesco and AQR, while insiders have sold stock recently and analysts mostly maintain a "Moderate Buy" with an average target of $43.60.

ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) was the target of a significant increase in short interest in February. As of February 27th, there was short interest totaling 8,764,243 shares, an increase of 18.5% from the February 12th total of 7,397,342 shares. Based on an average daily trading volume, of 2,473,494 shares, the days-to-cover ratio is currently 3.5 days. Currently, 5.8% of the shares of the stock are sold short. Currently, 5.8% of the shares of the stock are sold short. Based on an average daily trading volume, of 2,473,494 shares, the days-to-cover ratio is currently 3.5 days.

ExlService Price Performance

Shares of EXLS traded up $0.24 during midday trading on Monday, reaching $29.88. The stock had a trading volume of 1,602,740 shares, compared to its average volume of 2,122,609. The company has a current ratio of 2.56, a quick ratio of 2.56 and a debt-to-equity ratio of 0.32. The company has a market capitalization of $4.67 billion, a price-to-earnings ratio of 19.40, a price-to-earnings-growth ratio of 1.33 and a beta of 0.91. The company's 50-day moving average is $35.40 and its 200 day moving average is $39.42. ExlService has a 12-month low of $26.94 and a 12-month high of $48.79.

Insiders Place Their Bets

In other ExlService news, EVP Ajay Ayyappan sold 8,114 shares of the firm's stock in a transaction dated Tuesday, January 27th. The stock was sold at an average price of $42.53, for a total value of $345,088.42. Following the sale, the executive vice president owned 53,515 shares of the company's stock, valued at $2,275,992.95. This trade represents a 13.17% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. In the last 90 days, insiders sold 11,586 shares of company stock valued at $449,725. 4.04% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Invesco Ltd. lifted its holdings in shares of ExlService by 193.6% in the 2nd quarter. Invesco Ltd. now owns 4,645,745 shares of the business services provider's stock worth $203,437,000 after acquiring an additional 3,063,510 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of ExlService by 109.7% during the 4th quarter. AQR Capital Management LLC now owns 4,118,625 shares of the business services provider's stock valued at $174,794,000 after purchasing an additional 2,154,652 shares during the last quarter. Amundi bought a new position in shares of ExlService during the 3rd quarter valued at $67,862,000. Schroder Investment Management Group purchased a new position in ExlService in the 2nd quarter worth $60,415,000. Finally, Jane Street Group LLC lifted its stake in ExlService by 534.2% in the second quarter. Jane Street Group LLC now owns 1,354,599 shares of the business services provider's stock worth $59,318,000 after purchasing an additional 1,141,008 shares during the last quarter. 92.92% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Stifel Nicolaus cut their price objective on ExlService from $54.00 to $46.00 and set a "buy" rating for the company in a report on Thursday, February 26th. Needham & Company LLC reiterated a "buy" rating and set a $40.00 target price (down from $55.00) on shares of ExlService in a research report on Wednesday, February 25th. Robert W. Baird set a $35.00 price target on shares of ExlService in a research note on Wednesday, February 25th. Weiss Ratings reissued a "hold (c+)" rating on shares of ExlService in a report on Thursday, January 22nd. Finally, TD Cowen lowered their price objective on shares of ExlService from $51.00 to $45.00 and set a "buy" rating on the stock in a research report on Thursday, February 26th. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. Based on data from MarketBeat, ExlService presently has an average rating of "Moderate Buy" and an average target price of $43.60.

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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