Rohit Kapoor, the Chairman and CEO of ExlService Holdings, Inc. (NASDAQ:EXLS), recently sold a significant portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Kapoor sold a total of 200,000 shares over two days, resulting in proceeds of approximately $8.48 million. The sales were executed at prices ranging from $42.07 to $42.75 per share.
Following these transactions, Kapoor still retains direct ownership of 1,090,240 shares. Additionally, he holds indirect ownership through various family trusts, with holdings detailed in the filing. This move comes as Kapoor continues to manage his substantial stake in the company, balancing his direct and indirect ownership interests.
In other recent news, ExlService Holdings reported a significant 15% year-over-year revenue increase in its Q3 2024 Earnings Call, with total revenues hitting $472 million. The company's adjusted earnings per share (EPS) also experienced a 16% growth, reaching $0.44. Alongside these financial results, EXL has updated its full-year 2024 revenue guidance to between $1.825 billion and $1.835 billion, reflecting a projected 12% to 13% year-over-year growth. This decision comes in the wake of strong performance across all segments, especially in Digital Operations and Solutions.
The company's strategic focus on data modernization and artificial intelligence implementation has been key to these recent developments. EXL's investments in these areas include the acquisition of ITI Data and a partnership with Databricks. The company's commitment to talent development is also evident, with nearly 1 million training hours completed this year.
Analysts have noted the inherent volatility in the Analytics segment, despite its growth, and expressed optimism about the increase in number and value of large deals in the pipeline. The company's 2024 adjusted EPS is projected to be between $1.61 and $1.63, with capital expenditures for data and AI investments estimated at $48 million to $52 million.
InvestingPro Insights
ExlService Holdings, Inc. (NASDAQ:EXLS) has been experiencing strong market performance, as evidenced by recent InvestingPro data. The company's stock has shown impressive returns, with a 62.08% price total return over the past year and a 43.98% return in the last six months. This aligns with the recent insider selling activity by CEO Rohit Kapoor, who may be capitalizing on the stock's strong performance.
InvestingPro Tips highlight that EXLS is trading near its 52-week high and has demonstrated high returns over various time frames, including the last decade. This sustained growth trajectory adds context to Kapoor's decision to sell a portion of his holdings while still maintaining a significant stake in the company.
The company's financial health appears robust, with InvestingPro data showing a revenue of $1,771.0 million in the last twelve months as of Q3 2024, representing an 11.29% growth. Additionally, EXLS operates with a moderate level of debt and has liquid assets exceeding short-term obligations, indicating financial stability.
However, investors should note that EXLS is trading at a high P/E ratio of 39.5 and a high Price / Book multiple of 8.0. An InvestingPro Tip suggests that the stock is trading at a high earnings multiple relative to its near-term earnings growth, which could be a factor for potential investors to consider.
For a more comprehensive analysis, InvestingPro offers 18 additional tips on EXLS, providing deeper insights into the company's valuation, growth prospects, and market position.
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