ExlService (NASDAQ:EXLS) Shares Climb 5.5% - Here's Why

Key Points

• ExlService shares rose 5.5% to about $36.28, while trading volume was 92% below the average session volume.
• Analyst sentiment is favorable: six analysts rate the stock a Buy and one rates it Hold, producing a “Moderate Buy” consensus and an average price target of $44.50.
• The company exceeded quarterly expectations, reporting $0.59 in EPS versus $0.55 expected and $594.76 million in revenue versus $573.94 million expected; revenue increased 15.6% year over year.

ExlService Holdings, Inc. (NASDAQ:EXLS - Get Free Report)'s share price rose 5.5% during mid-day trading on Thursday. The company traded as high as $36.57 and last traded at $36.2780. 182,497 shares traded hands during trading, a decline of 92% from the average session volume of 2,307,811 shares. The stock had previously closed at $34.38.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on EXLS shares. Robert W. Baird set a $45.00 price objective on ExlService and gave the stock an "outperform" rating in a research note on Thursday, July 30th. Barrington Research set a $43.00 target price on ExlService in a research note on Thursday, July 30th. Weiss Ratings upgraded ExlService from a "hold (c-)" rating to a "hold (c)" rating in a research report on Wednesday, September 2nd. Needham & Company LLC raised their price target on ExlService from $40.00 to $45.00 and gave the company a "buy" rating in a report on Wednesday, July 29th. Finally, Wall Street Zen raised ExlService from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. Six research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $44.50.

ExlService Stock Performance

The company has a market capitalization of $5.55 billion, a price-to-earnings ratio of 23.01, a price-to-earnings-growth ratio of 1.39 and a beta of 0.81. The company has a 50-day moving average price of $35.12 and a 200-day moving average price of $31.28.

ExlService (NASDAQ:EXLS - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The business services provider reported $0.59 earnings per share 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 analyst estimates of $573.94 million. ExlService had a net margin of 11.17% and a return on equity of 30.61%. ExlService's quarterly revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.49 EPS. ExlService has set its FY 2026 guidance at 2.250-2.290 EPS. As a group, sell-side analysts anticipate that ExlService Holdings, Inc. will post 1.82 earnings per share for the current fiscal year.

Insider Activity at ExlService

In related news, insider Vikas Bhalla sold 11,000 shares of the firm'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 sale, the insider owned 130,295 shares of the company's stock, valued at approximately $4,559,022.05. This trade represents a 7.79% decrease in their position. 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 corporate insiders.

Institutional Investors Weigh In On ExlService

Hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new stake in ExlService during the 2nd quarter worth approximately $488,370,000. Bank of America Corp DE bought a new stake in shares of ExlService during the second quarter worth $48,189,000. Bank of New York Mellon Corp acquired a new stake in shares of ExlService during the second quarter worth $25,214,000. Fort Washington Investment Advisors Inc. OH lifted its position in ExlService by 35.6% in the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 939,698 shares of the business services provider's stock valued at $28,614,000 after acquiring an additional 246,690 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its stake in ExlService by 65.8% in the 4th quarter. BNP Paribas Financial Markets now owns 935,783 shares of the business services provider's stock worth $39,715,000 after purchasing an additional 371,383 shares during the period. Institutional investors and hedge funds own 92.92% of the company's stock.

About ExlService

ExlService Holdings, Inc NASDAQ: EXLS, commonly known as EXL, is a data analytics and digital operations company that helps organizations use data, artificial intelligence and technology to improve business performance. The company combines analytics, digital transformation and business process expertise to support decision-making, streamline operations and manage complex workflows.

EXL provides services and technology solutions across areas including insurance, healthcare, banking and capital markets, retail and consumer goods, utilities, media, travel and transportation.

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