Exela XELA Stock Forecast 2023: XELA Stock Buy or Sell?

Latest XELA Stock Price

XELA Stock Performance, May 26th

  • Last 5 D: -33.2%
  • Last 1 M: -36.9%
  • Last 3 M: -59.5%
  • Last 1 Y: -99.5%

Exela Technologies Latest News

  • NelsonHall’s Healthcare Payer Operational Transformation NEAT Vendor Evaluation 2023 names Exela Technologies as a Leader: In NelsonHall’s Healthcare Payer Operational Transformation NEAT Vendor Evaluation for 2023, Exela Technologies has been named a Leader for the second year in a row, making the company one of only a handful to hold this designation. Exela was recognized as a Leader in Overall Capability and Suitability for Claims Management.

Exela Technologies Quarterly Result

Last Quarter (Q1 of 2023)

The first quarter EPS for Exela Tech was $-0.0500, $0.31 lower than the analyst forecast of $-0.3600. $273.6M was the total revenue for the quarter.

Here are the highlights of the Q1 Earnings

Revenue: In the Q1 of 2023 Exela reported a revenue of $273.6 million which is 2.1% lower compared to $279.4 million in Q1 2022.

  • Revenue for the Information and Transaction Processing Solutions (“ITPS”) segment was $193.7 million,
  • Healthcare Solutions’ revenue was $63.0 million.
  • Legal and Loss Prevention Services revenue was $16.9 million.

Operating Income: In the first quarter Exela registered a loss in operating income. The operating income was $6.9 million in Q1 of 2023 compared with an operating loss of $7.3 million in Q1 of 2022.

Net Loss: Net loss for Q1 2023 was $47.5 million, compared with a net loss of $57.9 million in Q1 2022.

Diluted EPS: Diluted EPS for the Q1 of 2023 was -0.05. EBITDA for Q1 2023 was $18.0 million compared to $3.5 million in Q1 2022. 

Summary of the Last Four Quarters

(USD)Mar 2023Dec 2022Sep 2022Jun 2022
Net income-45.44M-194.14M-85.28M-79.2M
Diluted EPS-0.05-1.4-3.22
Net profit margin-16.61%-72.73%-32.30%-29.69%
Operating income-6.9M-10.06M-18.39M-21.36M
Net change in cash5.75M264K-48.37M11.2M
Cost of revenue216.47M218.85M217.84M217.28M

XELA Stock Forecast: Technical Analysis

Despite strong positive sentiment among the public and some analysts’ inclination towards a favorable outlook, the technical analysis presents a contrasting view.

Exela’s stock price after being rejected close to $7.10 has been on the downtrend and the stock has lost over 40% of its value since then. On the last trading day, XELA closed around 13% lower. The stock faces the fear of falling below $4.

Here is how XELA Performed On the Last Trading Day

  • Open: $4.60
  • Close: $4.0
  • Gain/Loss: -13.04%
  • Market Cap: $584.67 B
image 660

XELA stock is trading below both its 50-day as well as 200-day moving averages. The stock price has been on a downtrend. On Friday, the buyers will need to defend the $4 support. Falling below it will lead to highly bearish momentum.

The 50-day MA for XELA stock is $6.12 and the 200-day MA is $10.10. In order to attract more buyers, XELA needs to break above the 50-day Moving Average. The support for XELA stock is around $2.85 and the resistance is $7.06.

Overall the momentum is bearish. The Relative Strength Index of XELA stock is also on the downtrend, which indicates the sellers have outnumbered the buyers. At the time of writing the RSI is 37.11.

image 661

Furthermore, even the trend oscillators, such as the MACD (12,26) and ADX (14), convey unfavorable signals. These indicators imply that the stock’s performance is likely to enter a downward trend, leading to a decline in its price. Additionally, the stock exhibits relatively high volatility, slightly above the average volume observed over the past three months. With an Average True Range (ATR) (14) of 1.4111, the stock demonstrates a high volatility scenario. This implies that the price fluctuations may be higher, resulting in many significant profit opportunities.

The Williams Percent Range of XELA stock is -98.98. The stock is extremely oversold. When the WPR reaches such low levels, it suggests that the stock’s price has significantly declined and is potentially due for a reversal or a bounce back. An extremely oversold condition often implies that selling pressure has been excessive, leading to a potential buying opportunity.

In summary, although there is positive sentiment and some analysts support buying the stock, the technical analysis presents concerns regarding its performance. Check the Crowdwisdom360 momentum indicators for Tesla below. This is updated once during the trading session and once at the end of the session.

GMT: 01 Jun, 2023 05:45 PM
Overall OutlookNeutral
1. Market's WisdomNeutral
1a. Market DataPartially Bullish
1b. Technical RecommendationSell
2. Crowd's WisdomNeutral
2a. Social Media BuzzSteady
2b. Social Media SentimentNeutral

Exela Stock Forecast: 12-Month Target

Average Exela Price Target, 12 Months$2
B. Riley Securities$2
Cantor Fitzgerald$2

Exela Stock, Buy or Sell, Crowd Poll

XELA Stock Buy or Sell?

The following factors suggest XELA stock be a good investment:

  • Company’s focus on Automation and Digital Transformation: Exela is investing heavily in automation and digital transformation, which are key trends in the business process outsourcing (BPO) industry. These investments are expected to improve the company’s efficiency and profitability and make it more competitive.
  • Strong Customer Relationships: Exela has a long history of providing BPO services to a wide range of customers, including Fortune 500 companies. These relationships give the company a strong competitive advantage, as it can leverage its existing relationships to win new business.
  • Growth potential: The BPO industry is expected to grow at a compound annual growth rate (CAGR) of 7.5% from 2022 to 2027. Exela is well-positioned to benefit from this growth, as it is a leading provider of BPO services.

Risk Involved in Investing in XELA Stock

  • Financial Problems: Exela has a history of financial problems, including a bankruptcy filing in 2019. The company has since emerged from bankruptcy, but it is still working to improve its financial performance.
  • Company’s exposure to the Global Economy: Exela’s business is exposed to the global economy, which could be a risk if there is a recession or other economic downturn.
  • Competition: Exela faces competition from other BPO providers, both domestic and international. This competition could make it difficult for the company to grow its business.

Exela XELA Stock Forecast: Fundamentals

Exela Technologies Inc. reported its financial results for the full year and Q4 2022, ending December 31, 2022.

  1. The 2022 revenue was $1,077.2 million, down 7.7% YoY, and the net loss was $415.6 million, which includes non-cash goodwill impairment charges of $171.2 million.
  2. Total debt reduced by $141.1 million in 2022.
  3. Q4 2022 revenue was $267.0 million, down 9.3% YoY, and the net loss was $194.1 million, which includes non-cash goodwill impairment charges of $141.6 million.
  4. Revenue for the Information and Transaction Processing Solutions (ITPS) segment was $765.1 million, a decline of 12.5% YoY, while healthcare solutions revenue was $239.3 million, an increase of 9.9% YoY.
  5. Operating loss for 2022 was $228.8 million, compared with operating income of $21.4 million in 2021.
  6. EBITDA for 2022 was a loss of $174.7 million, compared to $114.5 million in 2021, and Adjusted EBITDA was $139.9 million, a decrease of 19.3% compared to $173.3 million in 2021.
  7. Exela raised a total of $276 million in gross proceeds from equity offerings in 2022 and raised a total of $31.3 million in Q4 2022.
  8. Exela experienced a network outage in June 2022, resulting in a loss of revenue in Q2 and Q3 2022, and incurred incremental costs, some of which are expected to continue.

Will Tesla reach $1000?

Exela Price Prediction: Macros

BPA uses machine learning (ML) to analyze data continuously in order to forecast the future and offer data-driven suggestions for improving operational performance. By giving BPA the ability to digitalize, formalize, optimize, and automate a wide range of processes now carried out by qualified human professionals, AI technology makes BPA smarter.

With a CAGR of 12.2% over the forecast period, the worldwide business process automation market size is predicted to expand from USD 9.8 billion in 2020 to USD 19.6 billion by 2026. The BPA market will continue to grow post-COVID-19 as more organizations throughout the globe intend to shift their IT infrastructure to the cloud, increase business continuity, and improvise business operations. The global market for business process management (BPM) software presently accounts for about 35% of sales revenue.

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.