Innodata Inc. (NASDAQ:INOD) Short Interest Down 44.6% in May

Key Points

• Short interest in Innodata fell sharply in May, dropping 44.6% to 2.91 million shares as of May 15. That amounts to about 10.1% of the float being shorted, with a short-interest ratio of just 0.6 days.
• The company beat earnings expectations in its May 7 report, posting $0.42 EPS versus the $0.08 estimate and revenue of $90.1 million, up 54.5% year over year. Management also posted strong profitability metrics, including a 13.86% net margin.
• Insiders sold significant shares in May, including director Louise C. Forlenza and COO Ashok Mishra, with insiders selling 1.14 million shares worth about $107.6 million over the past three months. Despite that, analysts remain generally positive, with a consensus rating of “Moderate Buy” and an average price target of $105.

Innodata Inc. (NASDAQ:INOD - Get Free Report) saw a large decrease in short interest in May. As of May 15th, there was short interest totaling 2,913,509 shares, a decrease of 44.6% from the April 30th total of 5,260,905 shares. Based on an average daily volume of 4,490,232 shares, the short-interest ratio is currently 0.6 days. Approximately 10.1% of the company's stock are short sold.

Wall Street Analyst Weigh In

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

Innodata Trading Down 1.0%

Shares of NASDAQ INOD traded down $1.10 during mid-day trading on Tuesday, hitting $114.22. 1,598,097 shares of the company traded hands, compared to its average volume of 1,604,666. Innodata has a 1 year low of $34.23 and a 1 year high of $118.45. The stock has a market capitalization of $3.73 billion, a price-to-earnings ratio of 102.90 and a beta of 2.82. 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 business has a 50 day moving average of $60.14 and a two-hundred day moving average of $55.25.

Innodata (NASDAQ:INOD - Get Free Report) last announced its 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 return on equity of 37.49% and a net margin of 13.86%.The business had revenue of $90.10 million during the quarter, compared to the consensus estimate of $76.47 million. During the same period in the prior year, the business posted $0.22 earnings per share. Innodata's revenue was up 54.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Innodata will post 0.99 earnings per share for the current fiscal year.

Insider Buying and Selling at Innodata

In other Innodata news, Director Louise C. Forlenza sold 30,000 shares of the company's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $88.86, for a total value of $2,665,800.00. Following the transaction, the director directly owned 3,943 shares of the company's stock, valued at $350,374.98. This represents a 88.38% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, COO Ashok Mishra sold 242,901 shares of the business's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $90.15, for a total value of $21,897,525.15. Following the completion of the sale, the chief operating officer owned 95,179 shares of the company's stock, valued at $8,580,386.85. This trade represents a 71.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,140,160 shares of company stock valued at $107,595,386 in the last three months. Corporate insiders own 11.80% of the company's stock.

Institutional Investors Weigh In On Innodata

Several hedge funds have recently bought and sold shares of the business. Glenmede Trust Co. NA raised its stake in shares of Innodata by 3.5% during the 1st quarter. Glenmede Trust Co. NA now owns 7,336 shares of the technology company's stock worth $283,000 after purchasing an additional 248 shares in the last quarter. Bank of America Corp DE raised its stake in shares of Innodata by 156.3% during the 1st quarter. Bank of America Corp DE now owns 102,268 shares of the technology company's stock worth $3,950,000 after purchasing an additional 62,361 shares in the last quarter. H&H International Investment LLC purchased a new stake in shares of Innodata during the 1st quarter worth about $386,000. Janus Henderson Group PLC raised its stake in shares of Innodata by 13.8% during the 1st quarter. Janus Henderson Group PLC now owns 526,012 shares of the technology company's stock worth $20,315,000 after purchasing an additional 63,779 shares in the last quarter. Finally, California State Teachers Retirement System raised its stake in shares of Innodata by 36.8% during the 1st quarter. California State Teachers Retirement System now owns 40,611 shares of the technology company's stock worth $1,568,000 after purchasing an additional 10,927 shares in the last quarter. 30.75% of the stock is owned by hedge funds and other institutional investors.

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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