ExlService (NASDAQ:EXLS) Hits New 12-Month Low - What's Next?

Key Points

• ExlService (NASDAQ:EXLS) fell to a new 52-week low, briefly trading as low as $24.85 amid heavy volume before closing near $25.86. The stock remains well below its 50-day and 200-day moving averages.
• Despite the stock weakness, analysts are still broadly positive: five analysts rate it a Buy and one a Hold, with a consensus target price of $41.50. Recent commentary included upgraded or reiterated bullish ratings from Weiss Ratings, Barrington Research, JPMorgan, and TD Cowen.
• The company recently posted solid quarterly results, beating EPS and revenue estimates, and it authorized a $125 million share buyback. However, insider selling by executives in pre-arranged trading plans and the stock’s sharp decline may be weighing on sentiment.

ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) hit a new 52-week low on Wednesday . The company traded as low as $24.85 and last traded at $25.86, with a volume of 3796865 shares. The stock had previously closed at $25.57.

Analysts Set New Price Targets

A number of analysts recently commented on EXLS shares. Weiss Ratings raised ExlService from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, June 15th. Barrington Research reissued an "outperform" rating and issued a $40.00 price objective on shares of ExlService in a research report on Thursday, June 25th. JPMorgan Chase & Co. raised their target price on ExlService from $42.00 to $43.00 and gave the company an "overweight" rating in a research report on Thursday, April 30th. Finally, TD Cowen reiterated a "buy" rating on shares of ExlService in a research note on Wednesday, June 17th. Five research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, ExlService currently has a consensus rating of "Moderate Buy" and a consensus target price of $41.50.

ExlService Stock Performance

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 cap of $3.95 billion, a PE ratio of 16.47, a price-to-earnings-growth ratio of 1.08 and a beta of 0.82. The company's 50 day moving average price is $29.00 and its 200-day moving average price is $33.16.

ExlService (NASDAQ:EXLS - Get Free Report) last posted its quarterly earnings data 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 return on equity of 28.50% and a net margin of 11.66%.The business had revenue of $570.35 million for the quarter, compared to the consensus estimate of $557.67 million. During the same quarter in the prior year, the business earned $0.48 earnings per share. ExlService's revenue for the quarter was up 13.8% on a year-over-year basis. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. Equities research analysts anticipate that ExlService Holdings, Inc. will post 1.8 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In other news, insider Vikas Bhalla sold 12,000 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $30.22, for a total transaction of $362,640.00. Following the completion of 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. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Ajay Ayyappan sold 5,093 shares of ExlService 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 approximately $1,426,215.34. This trade represents a 9.42% 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.

Institutional Trading of ExlService

A number of institutional investors have recently modified their holdings of the business. True Wealth Design LLC grew its stake in 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 buying an additional 257 shares in the last quarter. Private Trust Co. NA lifted its position in shares of ExlService by 56.2% during the fourth 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. Fifth Third Bancorp lifted its position in shares of ExlService by 15.0% during the fourth quarter. Fifth Third Bancorp now owns 1,982 shares of the business services provider's stock worth $84,000 after acquiring an additional 259 shares in the last quarter. Composition Wealth LLC lifted its position in shares of ExlService by 1.6% during the fourth quarter. Composition Wealth LLC now owns 20,230 shares of the business services provider's stock worth $859,000 after acquiring an additional 314 shares in the last quarter. Finally, Public Employees Retirement System of Ohio boosted its holdings in shares of ExlService by 0.6% in the third quarter. Public Employees Retirement System of Ohio now owns 54,274 shares of the business services provider's stock worth $2,390,000 after acquiring an additional 318 shares during the period. 92.92% of the stock is currently 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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