ExlService (NASDAQ:EXLS) Shares Gap Up After Strong Earnings

Key Points

• ExlService Holdings, Inc. shares gapped up to $44.88 after reporting earnings per share of $0.49, exceeding analysts’ estimates of $0.45, alongside a 14.7% year-over-year revenue growth.
• Several analysts have reiterated positive ratings on ExlService, with price targets ranging from $51.50 to $55.00, reflecting a consensus rating of “Moderate Buy.”
• Insider trading activity included significant sales, with one director reducing their stake by 15.62%, while institutional investors maintain a strong presence, owning nearly 93% of the company’s stock.

ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $42.20, but opened at $44.88. ExlService shares last traded at $46.09, with a volume of 852,951 shares.

The business services provider reported $0.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.04. ExlService had a return on equity of 25.38% and a net margin of 12.00%. The business had revenue of $514.46 million for the quarter, compared to the consensus estimate of $504.87 million. During the same quarter in the prior year, the company earned $0.40 EPS. The business's revenue was up 14.7% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities research analysts have issued reports on EXLS shares. Needham & Company LLC reissued a "buy" rating and set a $55.00 target price on shares of ExlService in a research note on Tuesday, June 3rd. JPMorgan Chase & Co. increased their price objective on shares of ExlService from $52.00 to $53.00 and gave the company an "overweight" rating in a report on Thursday, May 1st. Finally, Wall Street Zen upgraded shares of ExlService from a "hold" rating to a "buy" rating in a report on Friday, May 9th. One research analyst has rated the stock with a hold rating and six have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $51.50.

Insider Activity

In other news, insider Vikas Bhalla sold 25,000 shares of the company's stock in a transaction dated Thursday, May 8th. The shares were sold at an average price of $46.11, for a total transaction of $1,152,750.00. Following the transaction, the insider owned 135,046 shares in the company, valued at $6,226,971.06. This represents a 15.62% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 4.04% of the stock is currently owned by insiders.

Institutional Trading of ExlService

Hedge funds and other institutional investors have recently modified their holdings of the stock. Whittier Trust Co. acquired a new position in ExlService in the 1st quarter valued at about $45,000. Morse Asset Management Inc purchased a new stake in ExlService during the fourth quarter worth $49,000. Strategic Investment Solutions Inc. IL acquired a new position in ExlService in the first quarter valued at $77,000. Johnson Financial Group Inc. acquired a new stake in ExlService during the fourth quarter worth about $85,000. Finally, Caitong International Asset Management Co. Ltd grew its stake in shares of ExlService by 25.7% in the first quarter. Caitong International Asset Management Co. Ltd now owns 1,803 shares of the business services provider's stock valued at $85,000 after buying an additional 369 shares in the last quarter. 92.92% of the stock is owned by institutional investors and hedge funds.

ExlService Trading Down 1.6%

The company has a market cap of $6.95 billion, a P/E ratio of 29.70, a P/E/G ratio of 1.95 and a beta of 0.80. The company has a debt-to-equity ratio of 0.24, a quick ratio of 3.41 and a current ratio of 3.15. The business has a fifty day simple moving average of $44.83 and a 200 day simple moving average of $46.38.

About ExlService

ExlService Holdings, Inc operates as a data analytics, and digital operations and solutions company in the United States and internationally. The company operates through Insurance, Healthcare, Analytics, and Emerging Business segments. It also provides digital operations and solutions and analytics-driven services, such as claims processing, premium and benefit administration, agency management, account reconciliation, policy research, underwriting support, new business acquisition, policy servicing, premium audit, surveys, billing and collection, commercial and residential survey, and customer service using digital technology, artificial intelligence, machine learning, and advanced automation; digital customer acquisition services using a software-as-a-service delivery model through LifePRO and LISS platforms; subrogation services; and Subrosource software platform, an end-to-end subrogation platform.