ExlService (NASDAQ:EXLS) Shares Down 7.8% – Should You Sell?

Shares of ExlService Holdings, Inc. (NASDAQ:EXLS) were down 7.8% during trading on Wednesday . The company traded as low as $27.60 and last traded at $27.4170. Approximately 673,616 shares were traded during trading, a decline of 69% from the average daily volume of 2,168,580 shares. The stock had previously closed at $29.73.

Analyst Ratings Changes

Several research analysts have recently weighed in on EXLS shares. Weiss Ratings cut shares of ExlService from a “hold (c)” rating to a “hold (c-)” rating in a research note on Friday, April 24th. TD Cowen decreased their target price on ExlService from $51.00 to $45.00 and set a “buy” rating on the stock in a report on Thursday, February 26th. Stifel Nicolaus lowered their target price on ExlService from $54.00 to $46.00 and set a “buy” rating on the stock in a research report on Thursday, February 26th. Wall Street Zen upgraded ExlService from a “hold” rating to a “buy” rating in a research report on Saturday, February 7th. Finally, Robert W. Baird set a $35.00 price objective on ExlService in a research note on Wednesday, February 25th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $41.50.

ExlService Trading Up 2.3%

The stock has a market capitalization of $4.21 billion, a PE ratio of 17.55, a PEG ratio of 1.15 and a beta of 0.87. The stock’s 50 day moving average price is $30.68 and its 200-day moving average price is $35.83. The company has a quick ratio of 2.66, a current ratio of 2.66 and a debt-to-equity ratio of 0.53.

ExlService (NASDAQ:EXLS) last issued its earnings results on Tuesday, April 28th. The business services provider reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.05. The company had revenue of $570.35 million during the quarter, compared to the consensus estimate of $557.67 million. ExlService had a net margin of 11.66% and a return on equity of 28.50%. ExlService’s quarterly revenue was up 13.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.48 EPS. ExlService has set its FY 2026 guidance at 2.180-2.230 EPS. On average, sell-side analysts expect that ExlService Holdings, Inc. will post 1.79 earnings per share for the current fiscal year.

ExlService announced that its Board of Directors has initiated a stock repurchase plan on Tuesday, March 17th that allows the company to buyback $125.00 million in outstanding shares. This buyback authorization allows 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 management believes its shares are undervalued.

Insiders Place Their Bets

In other ExlService news, EVP Ajay Ayyappan sold 2,275 shares of the company’s stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $30.32, for a total value of $68,978.00. Following the completion of the transaction, the executive vice president directly owned 53,768 shares in the company, valued at $1,630,245.76. This represents a 4.06% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. 4.04% of the stock is owned by insiders.

Hedge Funds Weigh In On ExlService

Several hedge funds have recently modified their holdings of the stock. JPMorgan Chase & Co. grew its stake in ExlService by 9.5% during the fourth quarter. JPMorgan Chase & Co. now owns 5,927,793 shares of the business services provider’s stock valued at $251,576,000 after acquiring an additional 514,911 shares in the last quarter. AQR Capital Management LLC grew its position in shares of ExlService by 109.7% during the fourth quarter. AQR Capital Management LLC now owns 4,118,625 shares of the business services provider’s stock valued at $174,794,000 after purchasing an additional 2,154,652 shares in the last quarter. Handelsbanken Fonder AB grew its position in shares of ExlService by 10.7% during the fourth quarter. Handelsbanken Fonder AB now owns 3,781,036 shares of the business services provider’s stock valued at $160,467,000 after purchasing an additional 364,146 shares in the last quarter. Dimensional Fund Advisors LP increased its holdings in shares of ExlService by 1.1% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,902,412 shares of the business services provider’s stock worth $123,181,000 after purchasing an additional 32,734 shares during the last quarter. Finally, Mackenzie Financial Corp lifted its position in shares of ExlService by 1.6% in the third quarter. Mackenzie Financial Corp now owns 2,371,967 shares of the business services provider’s stock worth $104,438,000 after buying an additional 37,881 shares in the last quarter. Hedge funds and other institutional investors own 92.92% of the company’s stock.

About ExlService

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.