BWS Financial Reaffirms "Top Pick" Rating for Innodata (NASDAQ:INOD)

Key Points

• BWS Financial reaffirmed Innodata as a “top pick” with a $140 price target, implying 116.27% upside from the stock’s $64.73 price. The analyst consensus remains “Buy,” with an average target of $130.
• Innodata reported strong quarterly results, posting adjusted earnings of $0.41 per share versus the $0.21 consensus estimate and revenue of $92.14 million versus expectations of $86.31 million. Revenue increased 57.8% year over year.
• Insiders have been significant sellers, disposing of 1.47 million shares worth approximately $144 million over the past 90 days, while institutional investors own 30.75% of the company.

Innodata (NASDAQ:INOD - Get Free Report)'s stock had its "top pick" rating reiterated by research analysts at BWS Financial in a research report issued to clients and investors on Friday,Benzinga reports. They presently have a $140.00 target price on the technology company's stock. BWS Financial's price target suggests a potential upside of 116.27% from the stock's current price.

A number of other research firms also recently commented on INOD. Wedbush upped their price objective on Innodata from $100.00 to $120.00 and gave the stock an "outperform" rating in a report on Thursday, June 4th. Weiss Ratings cut shares of Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. Finally, Zacks Research raised Innodata from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, July 7th. Two analysts have rated the stock with a Strong Buy rating, one has given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $130.00.

Innodata Stock Performance

INOD traded down $0.74 during trading on Friday, reaching $64.73. The company's stock had a trading volume of 3,193,667 shares, compared to its average volume of 1,529,566. Innodata has a 52-week low of $34.23 and a 52-week high of $125.14. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.49 and a current ratio of 2.49. The company's fifty day moving average price is $79.62 and its 200-day moving average price is $62.74. The company has a market capitalization of $2.11 billion, a price-to-earnings ratio of 57.49 and a beta of 2.92.

Innodata (NASDAQ:INOD - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The technology company reported $0.41 earnings per share for the quarter, beating analysts' consensus estimates of $0.21 by $0.20. The business had revenue of $92.14 million during the quarter, compared to analysts' expectations of $86.31 million. Innodata had a return on equity of 37.49% and a net margin of 13.86%.The business's revenue for the quarter was up 57.8% on a year-over-year basis. During the same quarter last year, the business posted $0.20 earnings per share. On average, equities analysts forecast that Innodata will post 1.08 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Innodata news, CEO Jack Abuhoff sold 200,000 shares of the firm's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $110.20, for a total value of $22,040,000.00. Following the sale, the chief executive officer directly owned 1,340,456 shares in the company, valued at approximately $147,718,251.20. This trade represents a 12.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Louise C. Forlenza sold 18,000 shares of the stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $94.47, for a total transaction of $1,700,460.00. Following the completion of the sale, the director directly owned 3,943 shares in the company, valued at approximately $372,495.21. This trade represents a 82.03% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 1,472,885 shares of company stock worth $143,998,492. Company insiders own 11.80% of the company's stock.

Institutional Investors Weigh In On Innodata

A number of hedge funds have recently made changes to their positions in INOD. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Innodata in the 4th quarter valued at approximately $26,000. Farther Finance Advisors LLC increased its stake in shares of Innodata by 506.0% in the fourth quarter. Farther Finance Advisors LLC now owns 806 shares of the technology company's stock worth $41,000 after purchasing an additional 673 shares during the period. Fifth Third Bancorp acquired a new position in shares of Innodata during the 1st quarter worth about $45,000. Leonteq Securities AG acquired a new position in shares of Innodata during the 4th quarter worth about $51,000. Finally, IFP Advisors Inc boosted its stake in Innodata by 74.8% during the 4th quarter. IFP Advisors Inc now owns 1,166 shares of the technology company's stock valued at $59,000 after purchasing an additional 499 shares during the period. Institutional investors own 30.75% of the company's stock.

About Innodata

Innodata Inc NASDAQ: INOD is a digital services and technology company that specializes in data engineering and artificial intelligence solutions. Founded in 1988 and headquartered in East Brunswick, New Jersey, the company provides structured content and digital transformation services to publishers, media companies, legal and compliance organizations, and other information-intensive industries. Innodata's platform enables clients to convert unstructured text, images and multimedia into high‐quality, machine‐readable formats that support search, analytics and AI model training.

The firm's offerings include content enrichment, metadata management, taxonomy development, digital asset management and data annotation services.

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