#4 - Exela Technologies (NASDAQ:XELA)
Sector: Information Technology
What do you get when you combine a falling stock price with a potential lawsuit alleging securities fraud? That would be Exela Technologies (NASDAQ:XELA). In March, the company announced it was postponing its earnings release because of a delay in filing its 2019 annual report. The stock plunged about 8% on that news.
Then the company disclosed historical accounting errors and is restating its financial statements for 2017 and 2018 as well as any interim periods prior to September 30 of 2019. Not surprisingly the stock fell further.
The company has missed on analysts’ EPS expectations for the last seven quarters. The last time the company reported positive earnings per share was in August, 2016. As recently as August 2019 XELA was receiving buy ratings from analysts with a price target in the low single digits. However, the pending litigation will make it hard to see the company delivering anywhere close to that.
The combination of negative earnings and no apparent catalyst for revenue is limiting Exela’s long-term prospects. Bankruptcy and a delisted stock looks like a greater possibility than seeing the stock becoming anything more than just a potential short-term trade.
About Exela Technologies
Exela Technologies, Inc (Exela), formerly Quinpario Acquisition Corp. 2, is engaged in providing information and transaction processing solutions. The Company’s segments include Information and Transaction Processing Solutions (ITPS), Healthcare Solutions (HS) and Legal & Loss Prevention Services (LLPS).
Read More - Current Price
- $2.89
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
