Exela Technologies (NASDAQ:XELA) stock is climbing more than 10% this morning, rallying for the second straight day this week. Yesterday, shares of XELA stock soared around 40%.
The recent advances in Exela Technologies stock came after the company announced that it had obtained a great deal of additional financing. Exela operates call centers and develops software that automates certain IT processes.
Here’s what else investors should know about XELA.
Exela’s Funding Deal and Background
Yesterday, Exela announced that it had obtained an additional $51 million of funds from B. Riley (NASDAQ:RILY). The company will have to pay back this money in June 2025, when the “new securitization facility matures.” The facility “bears interest at a per annum rate of one-month Term SOFR plus 7.5%.” However, in conjunction with the deal, Exela paid off $29 million of a roughly $44 million loan that it had previously obtained.
On Jan. 19, Seeking Alpha reported that the company’s subsidiary, Exela Intermediate, missed “semiannual interest payments due under certain notes.” As of the end of last year, Exela had $1.16 billion of debt and only $10.4 million of cash. In 2022, Exela’s operating cash flow was a rather dismal -$124.9 million.
According to Yahoo! Finance, analysts who cover XELA stock expect revenue to climb to $1.2 billion in 2023, up from an estimated $1.14 billion in 2022. They also predict that losses will narrow from -$3.47 per share in 2022 to -$1.38 in 2023.
As of Feb. 15, about 7.3% of XELA shares were being sold short.
5 Investors Betting on XELA Stock
So, with all that said, who’s betting on Exela Technologies? Here are the top five institutional holders of XELA stock as of the end of 2022, according to Yahoo! Finance:
- Shay Capital: 2.99 million shares.
- Blackrock (NYSE:BLK): 1.27 million shares.
- Rafferty Asset Management: 1.14 million shares.
- Vanguard: 1.11 million shares
- Geode Capital Management: 559,454 shares.
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On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.
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