Innodata (NASDAQ:INOD) Issues Earnings Results, Beats Estimates By $0.20 EPS

Key Points

• Innodata beat quarterly estimates: The company reported EPS of $0.41, exceeding the $0.21 consensus, while revenue reached $92.14 million versus expectations of $86.31 million. Net margin was 13.86% and return on equity was 37.49%.
• Shares fell 5.6% despite the earnings beat, closing at $65.48. The stock has a market capitalization of $2.14 billion, a P/E ratio of 58.99, and a 52-week range of $34.23 to $125.14.
• Analyst sentiment remains positive, with a consensus “Buy” rating and an average price target of $130, although insiders sold approximately $144 million of stock over the past 90 days.

Innodata (NASDAQ:INOD - Get Free Report) posted its quarterly earnings results on Thursday. The technology company reported $0.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.20, FiscalAI reports. Innodata had a net margin of 13.86% and a return on equity of 37.49%. The business had revenue of $92.14 million during the quarter, compared to analyst estimates of $86.31 million.

Innodata Stock Down 5.6%

Shares of Innodata stock traded down $3.89 during trading on Thursday, hitting $65.48. The company's stock had a trading volume of 2,745,675 shares, compared to its average volume of 1,516,754. Innodata has a 52 week low of $34.23 and a 52 week high of $125.14. The company has a market capitalization of $2.14 billion, a PE ratio of 58.99 and a beta of 2.92. The company has a fifty day simple moving average of $80.29 and a two-hundred day simple moving average of $62.71. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.49 and a current ratio of 2.49.

Insider Buying and Selling at Innodata

In other Innodata news, COO Ashok Mishra sold 38,666 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $114.34, for a total value of $4,421,070.44. Following the sale, the chief operating officer owned 83,179 shares in the company, valued at approximately $9,510,686.86. This represents a 31.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Louise C. Forlenza sold 18,000 shares of Innodata stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $94.47, for a total transaction of $1,700,460.00. Following the transaction, the director owned 3,943 shares of the company's stock, valued at $372,495.21. The trade was a 82.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,472,885 shares of company stock worth $143,998,492 in the last ninety days. 11.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Wealth Management Co. purchased a new stake in shares of Innodata in the fourth quarter worth $26,000. US Bancorp DE raised its position in shares of Innodata by 15,500.0% in the 3rd quarter. US Bancorp DE now owns 1,092 shares of the technology company's stock worth $84,000 after purchasing an additional 1,085 shares during the last quarter. Kestra Advisory Services LLC purchased a new position in shares of Innodata in the 4th quarter worth about $109,000. Advisory Services Network LLC bought a new position in Innodata in the 3rd quarter worth about $118,000. Finally, Lazard Asset Management LLC boosted its stake in Innodata by 11,640.9% in the 2nd quarter. Lazard Asset Management LLC now owns 2,583 shares of the technology company's stock worth $132,000 after purchasing an additional 2,561 shares in the last quarter. Hedge funds and other institutional investors own 30.75% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts recently issued reports on INOD shares. Wedbush boosted their price target on Innodata from $100.00 to $120.00 and gave the company an "outperform" rating in a report on Thursday, June 4th. BWS Financial reiterated a "buy" rating on shares of Innodata in a report on Monday, June 15th. Weiss Ratings lowered 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 note on Tuesday, July 7th. Two research analysts have rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, Innodata currently has a consensus rating of "Buy" and a consensus price target of $130.00.

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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