Rohit Kapoor Takes Money Off The Table, Sells $1.36M In ExlService Holdings Stock

Revealing a significant insider sell on August 12, Rohit Kapoor, Chairman & CEO at ExlService Holdings EXLS, as per the latest SEC filing.

What Happened: Kapoor's recent move involves selling 40,000 shares of ExlService Holdings. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $1,362,000.

During Tuesday's morning session, ExlService Holdings shares up by 2.19%, currently priced at $35.0.

Unveiling the Story Behind ExlService Holdings

ExlService Holdings Inc. is a business process management company that provides digital operations and analytical services to clients driving enterprise-scale business transformation initiatives that leverage company's deep expertise in analytics, AI, ML and cloud. The company offers business process outsourcing and automation services, and data-driven insights to customers across multiple industries. The company operates through four segments based on the products and services offered and markets served: Insurance, Healthcare, Emerging, Analytics. The vast majority of the company's revenue is earned in the United States, and more than half of its revenue comes from Analytics segment.

Breaking Down ExlService Holdings's Financial Performance

Revenue Growth: ExlService Holdings displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.71%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 37.08%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): ExlService Holdings's EPS is below the industry average. The company faced challenges with a current EPS of 0.28. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.49.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: ExlService Holdings's current Price to Earnings (P/E) ratio of 31.71 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.33 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 17.66 reflects market recognition of ExlService Holdings's value, positioning it as more highly valued compared to industry peers.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Exploring the Significance of Insider Trading

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of ExlService Holdings's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.