ExlService Sees Unusually High Options Volume (NASDAQ:EXLS)

Key Points

• ExlService saw a sharp surge in bearish options activity: Investors purchased 10,011 put options, a 2,460% increase over the average volume of 391.
• EXLS shares traded at $35.80, while the company reported quarterly EPS of $0.59 and revenue of $594.76 million, exceeding analyst estimates; revenue rose 15.6% year over year.
• Analyst sentiment remains positive overall: Six analysts rate the stock Buy and one rates it Hold, producing a consensus “Moderate Buy” rating and an average price target of $44.50.

ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report) saw unusually large options trading on Wednesday. Stock investors purchased 10,011 put options on the company. This represents an increase of 2,460% compared to the average volume of 391 put options.

ExlService Stock Performance

Shares of EXLS traded down $0.48 during mid-day trading on Wednesday, hitting $35.80. 519,775 shares of the company traded hands, compared to its average volume of 2,328,963. ExlService has a 1 year low of $24.85 and a 1 year high of $44.32. The stock has a 50-day moving average price of $33.52 and a two-hundred day moving average price of $31.00. The stock has a market cap of $5.43 billion, a price-to-earnings ratio of 22.52, a P/E/G ratio of 1.46 and a beta of 0.81.

ExlService (NASDAQ:EXLS - Get Free Report) last announced its earnings results on Tuesday, July 28th. The business services provider reported $0.59 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.04. The business had revenue of $594.76 million for the quarter, compared to analysts' expectations of $573.94 million. ExlService had a return on equity of 30.61% and a net margin of 11.17%.The business's revenue for the quarter was up 15.6% on a year-over-year basis. During the same period last year, the firm posted $0.49 earnings per share. ExlService has set its FY 2026 guidance at 2.250-2.290 EPS. On average, analysts forecast that ExlService will post 1.82 EPS for the current year.

Insider Activity

In related news, insider Vikas Bhalla sold 11,000 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $34.99, for a total transaction of $384,890.00. Following the completion of the sale, the insider owned 130,295 shares in the company, valued at approximately $4,559,022.05. This represents a 7.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.66% of the stock is currently owned by insiders.

Institutional Trading of ExlService

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of ExlService during the 2nd quarter valued at about $488,370,000. Bank of America Corp DE bought a new stake in ExlService in the second quarter worth about $48,189,000. Bank of New York Mellon Corp bought a new stake in shares of ExlService during the 2nd quarter worth approximately $25,214,000. Deutsche Bank AG bought a new stake in shares of ExlService during the second quarter worth $19,355,000. Finally, Bank of Nova Scotia purchased a new stake in ExlService in the 2nd quarter valued at about $17,821,000. 92.92% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

EXLS has been the subject of a number of research reports. Barrington Research set a $43.00 target price on shares of ExlService in a research report on Thursday, July 30th. Wall Street Zen lowered ExlService from a "buy" rating to a "hold" rating in a research note on Saturday. TD Cowen restated a "buy" rating and issued a $45.00 price objective (up from $43.00) on shares of ExlService in a research report on Thursday, August 27th. Needham & Company LLC raised their price objective on shares of ExlService from $40.00 to $45.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Finally, Weiss Ratings raised ExlService from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. Six investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $44.50.

ExlService Company Profile

ExlService Holdings, Inc NASDAQ: EXLS, operating as EXL, is a global data analytics and digital operations company. It helps businesses use data, artificial intelligence and automation to improve decision-making, streamline processes and enhance customer experiences.

EXL provides services including advanced analytics, artificial intelligence, digital transformation, business process management, finance and accounting, customer care, claims administration, underwriting support and other industry-specific operations.

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