ExlService (NASDAQ:EXLS) Hits New 12-Month Low - Should You Sell?

Key Points

• ExlService (NASDAQ:EXLS) hit a new 52-week low, trading as low as $25.15, and was down about 4.3% on the day. The stock is now well below its 50-day and 200-day moving averages.
• Despite the recent weakness, analysts remain generally constructive: five rate the stock a Buy and one a Hold, with a consensus Moderate Buy target price of $41.50. Recent reports included lowered targets from some firms, though JPMorgan and others still see upside.
• The company’s latest earnings beat expectations, with revenue and EPS both topping estimates, and it also authorized a $125 million share buyback. However, recent insider selling by two executives may add to investor caution.

ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $25.15 and last traded at $25.22, with a volume of 2297614 shares trading hands. The stock had previously closed at $26.34.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on EXLS. Robert W. Baird set a $35.00 price objective on shares of ExlService in a report on Wednesday, February 25th. Needham & Company LLC reaffirmed a "buy" rating and set a $40.00 target price (down from $55.00) on shares of ExlService in a report on Wednesday, February 25th. JPMorgan Chase & Co. lifted their target price on shares of ExlService from $42.00 to $43.00 and gave the stock an "overweight" rating in a research report on Thursday, April 30th. Weiss Ratings raised shares of ExlService from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Monday, June 15th. Finally, Stifel Nicolaus cut their price target on shares of ExlService from $54.00 to $46.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Five investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.50.

ExlService Trading Down 4.3%

The company has a debt-to-equity ratio of 0.53, a current ratio of 2.66 and a quick ratio of 2.66. The firm's 50 day moving average is $29.45 and its 200 day moving average is $33.57. The company has a market capitalization of $3.85 billion, a PE ratio of 16.06, a P/E/G ratio of 1.10 and a beta of 0.82.

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

ExlService declared that its Board of Directors has approved a stock repurchase plan on Tuesday, March 17th that permits the company to buyback $125.00 million in shares. This buyback authorization permits the business services provider to purchase up to 2.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its stock is undervalued.

Insider Transactions at ExlService

In related news, EVP Ajay Ayyappan sold 5,093 shares of the firm'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 sale, the executive vice president directly owned 48,994 shares of the company's stock, valued at $1,426,215.34. This trade represents a 9.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available 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 business's stock in a transaction dated Thursday, June 4th. The shares were 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 approximately $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. Corporate insiders own 3.66% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in EXLS. Transamerica Financial Advisors LLC boosted its stake in shares of ExlService by 285.2% during 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 stake in ExlService by 57.2% in the fourth quarter. True Wealth Design LLC now owns 706 shares of the business services provider's stock worth $30,000 after buying an additional 257 shares in the last quarter. Private Trust Co. NA raised its stake in ExlService by 56.2% in the fourth quarter. Private Trust Co. NA now owns 717 shares of the business services provider's stock worth $30,000 after buying an additional 258 shares in the last quarter. V Square Quantitative Management LLC purchased a new stake in ExlService in the fourth quarter worth about $33,000. Finally, Hantz Financial Services Inc. lifted its holdings in ExlService by 183.1% in the fourth quarter. Hantz Financial Services Inc. now owns 1,353 shares of the business services provider's stock worth $57,000 after buying an additional 875 shares during the period. 92.92% of the stock is owned by hedge funds and other institutional investors.

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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