We wouldn't blame ExlService Holdings, Inc. (NASDAQ:EXLS) shareholders if they were a little worried about the fact that Rohit Kapoor, the Co-Founder recently netted about US$8.5m selling shares at an average price of US$42.41. However, that sale only accounted for 5.2% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At ExlService Holdings

Notably, that recent sale by Rohit Kapoor is the biggest insider sale of ExlService Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$45.49. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.2% of Rohit Kapoor's holding.

In the last year ExlService Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does ExlService Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that ExlService Holdings insiders own 3.2% of the company, worth about US$232m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About ExlService Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that ExlService Holdings is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ExlService Holdings. You'd be interested to know, that we found 1 warning sign for ExlService Holdings and we suggest you have a look.

Of course ExlService Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.