ExlService CEO Rohit Kapoor Sells $1.37M in Shares, Retains Substantial Stake

Rohit Kapoor, CEO of ExlService Holdings, sold 45,000 shares of the company's stock, valued at over $1.37 million, in two separate transactions on May 10 and 13, 2024, despite retaining a significant stake in the company, amidst ExlService's strong financial performance and positive analyst ratings. The sale takes place in the context of the business services industry, with ExlService Holdings being a New York-based company specializing in data analytics and operations management services. This description focuses on the primary topic of the CEO's stock sale, the main entity of ExlService Holdings, the context of the business services industry, and the significant action of the sale amidst the company's strong performance. The objective details provided will help guide the AI in creating an accurate visual representation of the article's content.

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ExlService CEO Rohit Kapoor Sells $1.37M in Shares, Retains Substantial Stake

ExlService CEO Rohit Kapoor Sells $1.37M in Shares, Retains Substantial Stake

Rohit Kapoor, Chairman and CEO of ExlService Holdings, Inc. (NASDAQ:EXLS), sold a total of 45,000 shares of the company's stock in two separate transactions on May 10 and 13, 2024, valued at over $1.37 million. Despite the substantial sale, Kapoor still retains a significant amount of ExlService Holdings stock under his direct ownership.

Why this matters: The sale of shares by a high-ranking executive like Kapoor can have a ripple effect on the company's stock price and investor confidence. Moreover, it may indicate a shift in the company's leadership's perspective on its growth prospects, which can have broader implications for the business services industry.

On May 10, Kapoor sold 15,000 shares at an average price of $30.61, totaling $459,150.00. Following this transaction, he owns 1,616,435 shares of the company's stock, valued at approximately $49,479,075.35. Three days later, on May 13, Kapoor sold an additional 30,000 shares at an average price of $30.47, amounting to $914,100.00. The prices for these shares ranged from $30.36 to $30.71 across the two transactions.

ExlService Holdings, Inc. is a New York-based business services company that specializes in providing data analytics and operations management services to its clients. The company has demonstrated solid financial performance, with a 12-month low of $25.17 and a 12-month high of $33.40. ExlService's stock traded down 0.12% during midday trading on Tuesday, hitting $30.27, giving the company a market cap of $4.92 billion.

According to InvestingPro, ExlService Holdings is trading at a high Price to Earnings (P/E) ratio of 27.38 for the last twelve months as of Q1 2024, suggesting high expectations for the company's earnings growth. The company's Price to Book (P/B) ratio stands at 6.12, indicating that investors are willing to pay a premium for its net assets. Additionally, the company has demonstrated solid revenue growth of 12.34% over the last twelve months, pointing to a strong market position and the potential for continued expansion.

In its most recent quarterly earnings results, issued on Thursday, February 29th, ExlService reported earnings per share (EPS) of $0.26 for the quarter, missing the consensus estimate of $0.27 by $0.01. The company had revenue of $414.06 million during the quarter, compared to analysts' expectations of $408.56 million.

Several research analysts have recently set new price targets for EXLS, with Needham Company LLC reiterating a buy rating and issuing a $40.00 price target. StockNews.com lowered shares of ExlService from a buy rating to a hold rating, while Citigroup dropped their price target from $38.00 to $37.00 and set a buy rating. Wedbush raised shares of ExlService from a neutral rating to an outperform rating and upped their price target from $34.00 to $40.00. TD Cowen also upped their price target from $36.00 to $37.00 and gave the company an outperform rating.

Institutional investors and hedge funds own 92.92% of ExlService's stock, with several increasing their stakes in the company. Healthcare of Ontario Pension Plan Trust Fund, Bessemer Group Inc, Covestor Ltd, Summit Creek Advisors LLC, and Vanguard Group Inc have all recently modified their holdings in ExlService.

Rohit Kapoor's substantial stock sale comes amidst ExlService's strong financial performance and positive analyst ratings. Despite the sale, Kapoor retains a significant stake in the company, demonstrating continued confidence in its future prospects. As a New York-based business services provider, ExlService Holdings has shown solid revenue growth and commands a premium valuation, reflecting its strong market position and potential for expansion.

Key Takeaways

  • Rohit Kapoor, ExlService CEO, sold 45,000 shares worth $1.37 million on May 10-13, 2024.
  • Kapoor still owns 1,616,435 shares, valued at approximately $49.48 million.
  • ExlService's stock traded down 0.12% to $30.27, with a market cap of $4.92 billion.
  • The company has a high P/E ratio of 27.38 and solid revenue growth of 12.34%.
  • Institutional investors and hedge funds own 92.92% of ExlService's stock, with several increasing their stakes.