Rohit Kapoor, Chairman and CEO of ExlService Holdings, Inc. (NASDAQ:EXLS), recently sold a significant portion of his holdings in the company. On November 6th and 7th, Kapoor sold a total of 200,000 shares of common stock. The sales were executed at prices ranging from $45.01 to $45.40 per share, amounting to approximately $9.04 million in total value.
Following these transactions, Kapoor continues to hold a substantial number of shares in the company. As of the latest filing, he retains ownership of 889,645 shares directly. The stock sales were part of a series of transactions disclosed in a Form 4 filed with the Securities and Exchange Commission.
In other recent news, ExlService Holdings (EXL) reported a significant year-over-year revenue increase of 15% in its Q3 2024 earnings call, reaching a total of $472 million. The company's adjusted earnings per share also saw a 16% growth, hitting $0.44. EXL has raised its full-year 2024 revenue guidance to between $1.825 billion and $1.835 billion, marking a 12% to 13% year-over-year growth. This upward revision reflects robust performance across all segments, particularly in Digital Operations and Solutions.
EXL's strategic focus on data modernization and artificial intelligence (AI) implementation is evident in its acquisition of ITI Data and partnership with Databricks. The company reported almost 1 million training hours completed this year, highlighting its commitment to talent development. In terms of future expectations, analysts predict EXL's full-year 2024 revenues to stay within the range of $1.825 billion to $1.835 billion, with an adjusted EPS between $1.61 and $1.63.
These recent developments suggest a strong financial performance and a promising future for EXL. The company's consistent investments in AI, data modernization, and talent development have positioned it well to capitalize on the growing demand for digital transformation services.
InvestingPro Insights
The recent stock sales by ExlService Holdings' CEO Rohit Kapoor come at a time when the company's shares are trading near their 52-week high, according to InvestingPro data. The stock's current price of $45.49 is 99.67% of its 52-week high, indicating strong market performance.
This robust performance is reflected in EXLS's impressive returns across various timeframes. InvestingPro data shows a 68.86% return over the past year and a 47.46% return year-to-date. The company has also demonstrated strong short-term momentum, with a 17.15% return over the last month and a notable 9.22% gain in just the past week.
However, investors should note that EXLS is trading at relatively high valuation multiples. The company's P/E ratio stands at 39.73, which is considered high by many valuation standards. This is further emphasized by an InvestingPro Tip indicating that EXLS is trading at a high earnings multiple relative to its near-term earnings growth, with a PEG ratio of 4.58.
Despite the high valuation, EXLS has shown solid financial performance. The company's revenue for the last twelve months as of Q3 2023 was $1.77 billion, with a revenue growth of 11.29% over the same period. The company also maintains a healthy gross profit margin of 37.24% and an operating income margin of 13.93%.
For investors seeking a more comprehensive analysis, InvestingPro offers 21 additional tips for EXLS, providing a deeper understanding of the company's financial health and market position. These insights can be particularly valuable given the recent insider selling activity and the stock's current valuation levels.
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