Exela Technologies: Buy, Sell, or Hold?

imageStock Markets20 minutes ago (Jul 06, 2021 09:30AM ET)

(C) Reuters. Exela Technologies: Buy, Sell, or Hold?

Business process automation leader Exela (XELA) has been expanding its digital capabilities by deploying new solutions for several small and large businesses. However, unless the company can make its core business more sustainable, improve its financials and deliver substantially more profits, will the stock be able to maintain its momentum? Let’s find out.Exela Technologies (NASDAQ:XELA) is a global leader in digital business process services and data-driven business innovations. The company operates through Information & Transaction Processing Solutions (ITPS), Healthcare Solutions (HS), and Legal & Loss Prevention Services (LLPS) segments. Over the past year, the stock has surged 59.3%, driven primarily by increased adoption of the company’s Digital Assets Group solutions by small and medium businesses (SMBs) amid remote working trends. XELA’s newly introduced Robotic Process Automation (RPA) platform, as well as its Digital Mailroom platform in the U.K., should help the company drive continued operational and business improvement.

However, XELA’s stock is down 14.9% over the past three months. Also, the stock is currently trading 76% below its 52-week high of $7.82, which it hit on March 10. Although the company’s gross margin and adjusted EBITDA margin improved year-over-year in its last reported quarter, it suffered a substantial net loss. Furthermore, XELA’s Information and Transaction Processing Solutions segment revenue declined 18.4% year-over-year to $231.9 million in the first quarter of 2021.

While the accelerating demand for its digital solutions and cloud hosted services could be a silver lining for the stock, XELA’s unstable financials and weak profitability could lead to bearish investor sentiment.

Continue reading on StockNews

Exela Technologies: Buy, Sell, or Hold?

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.