Rohit Kapoor, Chairman and CEO of ExlService Holdings, Inc. (NASDAQ:EXLS), sold 100,000 shares of the company's common stock on November 8, according to a recent SEC filing. The shares were sold at an average price of $45.66, generating a total of approximately $4.57 million.
Following this transaction, Kapoor retains direct ownership of 789,645 shares. Additionally, various family trusts hold indirect ownership of substantial shares, including the 2016 Kapoor Family Trust and the Rohit Kapoor Spousal Lifetime Access Trust, among others. These trusts collectively own hundreds of thousands of shares, reflecting Kapoor's significant ongoing stake in the company.
This stock sale is part of a series of transactions that Kapoor has executed, maintaining transparency with investors and regulatory bodies.
In other recent news, ExlService Holdings has reported robust growth in its third-quarter earnings, with a notable 15% year-over-year revenue increase, reaching $472 million. The company's adjusted earnings per share (EPS) also saw a significant rise, growing by 16% to $0.44. These developments have led EXL to raise its full-year 2024 revenue guidance to between $1.825 billion and $1.835 billion, a 12% to 13% year-over-year growth.
The company's strong performance is largely attributed to its strategic focus on data modernization and artificial intelligence (AI) implementation. Notably, the Digital Operations and Solutions segment, as well as the Analytics segment, have been primary growth drivers. EXL's investment in AI and data modernization includes the acquisition of ITI Data and a partnership with Databricks.
Furthermore, EXL has committed to talent development, with nearly 1 million training hours completed this year. The company's projected adjusted EPS for 2024 is between $1.61 and $1.63. These are recent developments that highlight ExlService Holdings' strong financial performance and positive outlook for the future.
InvestingPro Insights
In light of Rohit Kapoor's recent stock sale, it's worth examining ExlService Holdings' current market position and performance. According to InvestingPro data, EXLS boasts a market capitalization of $7.51 billion, reflecting its substantial presence in the industry. The company's P/E ratio stands at 40.63, indicating that investors are willing to pay a premium for its earnings, possibly due to growth expectations.
ExlService Holdings has demonstrated strong financial performance, with revenue reaching $1.77 billion in the last twelve months as of Q3 2023, representing a growth of 11.29%. This solid revenue growth aligns with the company's market valuation and investor confidence.
InvestingPro Tips highlight some interesting aspects of EXLS's stock performance. The stock has shown a significant return over the last week, with a 1-week price total return of 8.87%. Moreover, EXLS has delivered a remarkable 74.61% return over the past year, showcasing its strong market performance.
It's noteworthy that EXLS is trading near its 52-week high, with its current price at 98.94% of the 52-week high. This proximity to the peak price could be a factor in Kapoor's decision to sell shares, potentially capitalizing on the stock's strong performance.
Investors should be aware that EXLS is trading at high valuation multiples, including high EBIT, EBITDA, and revenue valuation multiples. An InvestingPro Tip also indicates that the stock is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 4.72 for the last twelve months as of Q3 2023.
For those interested in a more comprehensive analysis, InvestingPro offers 21 additional tips for EXLS, providing a deeper understanding of the company's financial health and market position.
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