Sellers have been exhausted over the last few months in the Exela Technologies stock. That’s good news for the stock’s future. It suggests there isn’t much downside from here [based on current sentiment], but that sentiment could change in the future on fresh news surrounding the company. In general, those holding Exela stock today are investors with a long investment horizon. What’s more, FinViz has a $400 price target on this stock which is an x83 from its current price of $4.80.
Numerous articles recently have labeled Exela as a penny stock you want to sell. The technicals suggest otherwise though for now. Exela price seems steady at around $5 and given its price target of $400, it’s a stock worth a gamble for those with a medium investment horizon.
On June 9, Exela sold off its high-speed scanner business as part of the company’s attempt to cut debt. On June 20 Exela announced generative AI initiatives. And on June 21, Exela’s AI was nominated for the Pay360 award. I was surprised that even with the news regarding AI, Exela didn’t move up in recent weeks. But I mentioned in a previous post that AI should at least help establish a higher floor, which it may have done now.
I owned some Exela stock before June and I added to my position in June. I am comfortable with Exela not being a penny stock I want to sell as I wait for the $400 price target to play out. I much prefer having my money on Exela today than other penny stocks such as Arrival which doesn’t have any revenue. Unlike Arrival, Exela has not only real revenue but over 1 billion in revenue. The reason Exela is so cheap today is that even though it has revenue, it is still part of the profitless tech category of stocks that institutions in particular don’t like right now in this time of higher rates and economic uncertainty. That said, more asset managers are quickly becoming more bullish on this market. So far only the large-cap tech has risen, but some asset managers are now expecting that rise to broaden. Could Exela be a beneficiary?
Exela Technologies has a market cap of 30.58M and 1.07B in sales. Its income is -412.50M. Exela has an RSI of 44.65 and a short float of 15.93%.