Rohit Kapoor, Chairman & CEO at ExlService Holdings EXLS, disclosed an insider sell on November 12, according to a recent SEC filing.

What Happened: Kapoor’s decision to sell 100,000 shares of ExlService Holdings was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $4,566,000.

The latest update on Wednesday morning shows ExlService Holdings shares down by 0.83%, trading at $46.43.

Discovering ExlService Holdings: A Closer Look

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’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.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 37.76%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): ExlService Holdings’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.33.

Debt Management: ExlService Holdings’s debt-to-equity ratio is below the industry average at 0.47, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: ExlService Holdings’s current Price to Earnings (P/E) ratio of 41.07 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.37, 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): ExlService Holdings’s EV/EBITDA ratio of 22.66 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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The Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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.