Exela Technologies (NASDAQ:XELA) Stock Goes Parabolic: Time To Book Profit?
Exela Technologies (NASDAQ:XELA) has recently become a popular tech stock as growth investors gravitate towards the stock with a 20% higher move in the company’s stock demonstrating strong investor demand.
The firm giving transaction processing services, document management as well as enterprise information, is liked by growth investors, with the stock having tripled from June lows till date. Exela is a retail short-squeeze candidate, which has become a favourite among Reddit investors, with high short interest ratio of 28%. Furthermore, 66% short borrow fee rate is costing a lot of money for short-sellers to go against the stock.
The firm announced expansion of its AI-enabled automation through the robotic process automation platform deployed in healthcare as well as public sector. Scalable technologies allure investors and the firm’s intelligent document processing platform harnesses AI and machine learning technologies.
Exela also confirmed on the growth of its cash position to over $205 million. With a market capitalisation of about $210 million, investors are getting shares for about the same gross cash position of the firm, which is considered impressive.
The firm also remarked on deleveraging with plans at-the-market equity program to lower the debt in the near term and annual interest expense by $25 million, resulting in better growth opportunities for long-term opportunities.
Market Reaction:
On Monday, XELA stock gained 19.24% at $3.47 with more than 236.71 million shares, compared to its average volume of 34.87 million shares. The stock had moved within a range of $2.9800 – 3.6300 after opening the trade at $3.19. Over the past 52-week, the stock has been trading within a range of $0.9900 – 7.8200.
