A substantial insider sell was reported on November 6, by Rohit Kapoor, Chairman & CEO at ExlService Holdings EXLS, based on the recent SEC filing.

What Happened: Kapoor’s recent move involves selling 200,000 shares of ExlService Holdings. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $8,482,000.

Monitoring the market, ExlService Holdings‘s shares down by 0.0% at $45.15 during Thursday’s morning.

Delving into ExlService Holdings’s Background

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.

Financial Insights: ExlService Holdings

Revenue Growth: ExlService Holdings’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 14.87%. This indicates a substantial increase in the company’s top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 37.76%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): ExlService Holdings’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.33.

Debt Management: With a below-average debt-to-equity ratio of 0.47, ExlService Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: ExlService Holdings’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 39.6.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.21, ExlService Holdings’s stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 21.86, ExlService Holdings demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization: Surpassing industry standards, the company’s market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Delving Into the Significance of Insider Transactions

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Deciphering Transaction Codes in Insider Filings

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals 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.

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