Innodata (NASDAQ:INOD) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Innodata from “strong buy” to “hold,” although the broader analyst consensus remains “moderate buy” with an average price target of $130.
• Innodata reported strong quarterly results, with revenue rising 57.8% year over year to $92.14 million and EPS of $0.41, nearly double the $0.21 consensus estimate.
• The stock remains highly volatile and richly valued, with a beta of 2.92 and a P/E ratio of 46.57; meanwhile, company insiders sold nearly $95.7 million worth of shares over the past 90 days.

Innodata (NASDAQ:INOD - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday,Zacks.com reports.

Other analysts have also recently issued reports about the stock. Wedbush increased their price target on shares of Innodata from $100.00 to $120.00 and gave the company an "outperform" rating in a research note on Thursday, June 4th. BWS Financial reiterated a "top pick" rating and issued a $140.00 price objective on shares of Innodata in a research report on Friday, August 7th. Finally, Weiss Ratings downgraded Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, Innodata presently has a consensus rating of "Moderate Buy" and an average target price of $130.00.

Innodata Stock Performance

Innodata stock opened at $61.47 on Tuesday. The stock has a 50-day simple moving average of $75.74 and a 200 day simple moving average of $62.78. The company has a quick ratio of 2.49, a current ratio of 2.49 and a debt-to-equity ratio of 0.07. Innodata has a 12-month low of $34.23 and a 12-month high of $125.14. The stock has a market capitalization of $2.11 billion, a price-to-earnings ratio of 46.57 and a beta of 2.92.

Innodata (NASDAQ:INOD - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $0.41 EPS for the quarter, topping analysts' consensus estimates of $0.21 by $0.20. The firm had revenue of $92.14 million for the quarter, compared to analyst estimates of $86.31 million. Innodata had a net margin of 14.66% and a return on equity of 41.94%. The company's revenue was up 57.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 EPS. On average, research analysts anticipate that Innodata will post 1.18 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Jack Abuhoff sold 200,000 shares of the company's stock in a transaction dated 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 completion of the sale, the chief executive officer owned 1,340,456 shares in the company, valued at approximately $147,718,251.20. This represents a 12.98% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, COO Ashok Mishra sold 38,666 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $114.34, for a total value of $4,421,070.44. Following the transaction, the chief operating officer owned 83,179 shares of the company's stock, valued at $9,510,686.86. The trade was a 31.73% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 946,834 shares of company stock valued at $95,725,936 over the last 90 days. Company insiders own 11.80% of the company's stock.

Hedge Funds Weigh In On Innodata

A number of hedge funds and other institutional investors have recently made changes to their positions in INOD. RFG Advisory LLC bought a new position in shares of Innodata during the 4th quarter valued at about $5,750,000. Janus Henderson Group PLC boosted its stake in Innodata by 13.8% in 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 during the period. Bleakley Financial Group LLC acquired a new position in Innodata in the 4th quarter worth $900,000. Next Century Growth Investors LLC boosted its stake in Innodata by 107.5% in the 4th quarter. Next Century Growth Investors LLC now owns 365,835 shares of the technology company's stock worth $18,639,000 after purchasing an additional 189,488 shares during the period. Finally, UBS Group AG increased its holdings in Innodata by 37.1% during the 4th quarter. UBS Group AG now owns 350,928 shares of the technology company's stock worth $17,880,000 after purchasing an additional 95,002 shares in the last quarter. 30.75% of the stock is owned by institutional investors.

Key Stories Impacting Innodata

Here are the key news stories impacting Innodata this week:

• Positive Sentiment: Innodata reaffirmed its outlook for at least 40% revenue growth in 2026. Record second-quarter results, a broader customer base and a sizable untapped pipeline support the potential for further upside. Innodata Reaffirms 40% Growth Outlook: Is More Upside Ahead?
• Positive Sentiment: Zacks identified INOD as one of two AI-led engineering and research-and-development services stocks with strong growth prospects and significant potential price upside. Buy 2 AI-Led Engineering R&D Services Stocks to Tap Solid Price Upside
• Positive Sentiment: Maxim Group raised its 2026 EPS forecast for Innodata to $1.32 from $1.02 and lifted its 2027 forecast to $1.41 from $1.32. The firm also increased estimates for several quarters, including Q3 2026 EPS to $0.24 from $0.19, signaling stronger expected profitability.
• Positive Sentiment: A recent quarterly report showed revenue growth of 57.8% year over year and EPS of $0.41, well above the $0.21 consensus estimate, reinforcing the company’s growth momentum.
• Neutral Sentiment: A report showed zero short interest as of August 11, unchanged from the prior reported figure. Because the data indicates no short positions, it provides little direct catalyst for the stock.
• Negative Sentiment: INOD remains a high-volatility growth stock, with a P/E ratio near 47 and a beta of 2.92. Those metrics leave the shares sensitive to profit-taking or broader weakness in technology and AI-related stocks, even as operating expectations improve.

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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