Nomura Asset Management Co. Ltd. Cuts Holdings in Innodata Inc. $INOD

Key Points

• Nomura Asset Management cut its Innodata stake by 7.7% in the fourth quarter, selling 10,600 shares and leaving it with 126,900 shares worth about $6.47 million.
• Insider selling has been heavy, with CEO Jack Abuhoff and COO Ashok Mishra both selling large blocks of stock; insiders have sold 1.18 million shares worth about $112 million over the last 90 days.
• Innodata beat Q1 expectations, reporting EPS of $0.42 versus $0.08 expected and revenue of $90.1 million, up 54.5% year over year, while analysts currently maintain a Moderate Buy consensus with a $105 average target.

Nomura Asset Management Co. Ltd. trimmed its holdings in shares of Innodata Inc. (NASDAQ:INOD - Free Report) by 7.7% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 126,900 shares of the technology company's stock after selling 10,600 shares during the period. Nomura Asset Management Co. Ltd. owned approximately 0.40% of Innodata worth $6,466,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in the business. Texas Yale Capital Corp. boosted its stake in Innodata by 5.5% during the 4th quarter. Texas Yale Capital Corp. now owns 8,440 shares of the technology company's stock valued at $430,000 after purchasing an additional 440 shares during the last quarter. Northwestern Mutual Wealth Management Co. purchased a new stake in Innodata during the 4th quarter valued at $26,000. Intech Investment Management LLC boosted its stake in Innodata by 96.5% during the 4th quarter. Intech Investment Management LLC now owns 13,447 shares of the technology company's stock valued at $685,000 after purchasing an additional 6,604 shares during the last quarter. Geode Capital Management LLC boosted its stake in Innodata by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 752,795 shares of the technology company's stock valued at $38,362,000 after purchasing an additional 2,407 shares during the last quarter. Finally, Bleakley Financial Group LLC purchased a new stake in Innodata during the 4th quarter valued at $900,000. 30.75% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, CEO Jack Abuhoff sold 150,000 shares of the firm's stock in a transaction on Monday, May 18th. The stock was sold at an average price of $94.39, for a total value of $14,158,500.00. Following the transaction, the chief executive officer directly owned 1,340,456 shares of the company's stock, valued at approximately $126,525,641.84. This trade represents a 10.06% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, COO Ashok Mishra sold 242,901 shares of the firm's stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $90.15, for a total value of $21,897,525.15. Following the completion of the transaction, the chief operating officer directly owned 95,179 shares in the company, valued at approximately $8,580,386.85. This represents a 71.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,178,826 shares of company stock worth $112,016,456. 11.80% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several analysts have commented on INOD shares. BWS Financial reiterated a "top pick" rating and set a $110.00 target price on shares of Innodata in a research note on Friday, April 10th. Weiss Ratings downgraded Innodata from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, May 19th. Wedbush raised their price target on Innodata from $80.00 to $100.00 and gave the stock an "outperform" rating in a research note on Thursday, May 14th. Finally, Wall Street Zen upgraded Innodata from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $105.00.

Innodata Price Performance

NASDAQ INOD opened at $108.27 on Thursday. Innodata Inc. has a 52 week low of $34.23 and a 52 week high of $118.45. The firm has a market capitalization of $3.54 billion, a P/E ratio of 97.54 and a beta of 2.83. The company has a quick ratio of 2.49, a current ratio of 2.49 and a debt-to-equity ratio of 0.07. The company has a 50-day moving average price of $62.81 and a 200-day moving average price of $55.98.

Innodata (NASDAQ:INOD - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The technology company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.08 by $0.34. Innodata had a net margin of 13.86% and a return on equity of 37.49%. The firm had revenue of $90.10 million during the quarter, compared to analyst estimates of $76.47 million. During the same quarter in the prior year, the firm earned $0.22 EPS. The business's revenue for the quarter was up 54.5% compared to the same quarter last year. Equities research analysts anticipate that Innodata Inc. will post 0.99 earnings per share for the current year.

Innodata Company Profile

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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