Exela Technologies, Inc. (XELA), a company that provides transaction processing solutions, enterprise information management, document management, and digital business process services, has declined 6.38% in aftermarket trading session and consequently is trading at $0.80 at the time of the writing. The decline could be attributed to the profit-taking factor after the stock rallied by 26.83% during Tuesday’s regular trading session and closed the day at $0.86. The surge came as a result of the CEO’s comments regarding the growth momentum followed by the company.
XELA CEO Comments
On Tuesday, CEO of XELA, Ron Cogburn, commented that Exela is the global leader in business process management solutions. The company’s strategy is to scale up its cloud usage and it expects that all customers and employees will be using the cloud by the end of 2022. Solid growth momentum is what the company is looking at this point in time. Looking ahead, the company has the technology, an extensive history, and an employee base, and the strength that provides it confidence with what it has planned for the year 2022.
Share Buyback Program
On 26th January, XELA announced the beginning of an offer to the holders of Exela’soutstanding shares of common stock for the exchange of up to 100,000,000 shares of Common Stock for up to $100,000,000 aggregate principal amount of its unsecured 6.00% senior notes due 2029. The company said that the offer is being made according to the exemptions from registration requirements of the Securities Act of 1933. Under the rules, in case the Common Stock tendered is freely tradable, the New Notes which would be received in the exchange are to be freely tradable.
Renewal of Contract
On 25th January, XELA announced the renewal of its services contract with a consulting firm. Both the companies have already been in a relationship for a period of more than 20 years. The total contract is valued at over $35 million. Exela said that it is committed to continuing the innovation and rapid response to the ever-changing work environment to enable its customers to operate without disruption. The company further said that its intelligent lockers and Digital Mailrooms (DMR) are a component of the broader suite of solutions provided to the customer.
Future Outlook for XELA
Stats reveal that during the last three months, XELA stock has declined more than 50%, but the recent weeks have seen it bounce back. Looking ahead, the analysts believe that even though the stock holds several positive signals, it should be considered a hold candidate at this point of time while waiting for further developments.