Disclosed on November 18, Rohit Kapoor, Chairman & CEO at ExlService Holdings EXLS, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday outlined that Kapoor executed a sale of 100,000 shares of ExlService Holdings with a total value of $4,531,000.

Monitoring the market, ExlService Holdings‘s shares down by 0.0% at $44.35 during Tuesday’s morning.

About 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.

Financial Milestones: ExlService Holdings’s Journey

Revenue Growth: Over the 3 months period, ExlService Holdings showcased positive performance, achieving a revenue growth rate of 14.87% as of 30 September, 2024. This reflects a substantial 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.

Exploring Profitability:

• Gross Margin: With a low gross margin of 37.76%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): ExlService Holdings’s EPS reflects a decline, falling below the industry average with a current EPS of 0.33.

Debt Management: ExlService Holdings’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.47.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 38.9 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 4.14, 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 stands at 21.48, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Understanding the Significance of Insider Transactions

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

Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.