Innodata (NASDAQ:INOD) Shares Down 7.7% on Insider Selling

Key Points

• Innodata shares fell 7.7% after a wave of insider selling, with the stock dropping from a prior close of $94.72 to around $87.41 during Tuesday’s trading.
• CEO Jack Abuhoff sold 250,000 shares across two transactions last week, while Director Stewart R. Massey also sold 10,000 shares. The sales totaled millions of dollars and reduced their ownership stakes.
• Despite the selloff, Innodata recently posted strong quarterly results, beating earnings and revenue expectations, and analysts still rate the stock a Moderate Buy with a consensus price target of $105.

Innodata Inc. (NASDAQ:INOD - Get Free Report) shares traded down 7.7% during trading on Tuesday following insider selling activity. The company traded as low as $88.60 and last traded at $87.4060. 274,990 shares changed hands during trading, a decline of 82% from the average session volume of 1,556,240 shares. The stock had previously closed at $94.72.

Specifically, CEO Jack Abuhoff sold 150,000 shares of the stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $94.39, for a total transaction of $14,158,500.00. Following the completion of 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 represents a 10.06% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CEO Jack Abuhoff sold 100,000 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $95.78, for a total value of $9,578,000.00. Following the completion of the sale, the chief executive officer directly owned 1,340,456 shares of the company's stock, valued at $128,388,875.68. This represents a 6.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In other news, Director Stewart R. Massey sold 10,000 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $96.00, for a total value of $960,000.00. Following the completion of the transaction, the director owned 11,000 shares in the company, valued at $1,056,000. This trade represents a 47.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink.

Analyst Ratings Changes

INOD has been the topic of a number of research analyst reports. Weiss Ratings reissued a "hold (c+)" rating on shares of Innodata in a report on Friday, April 10th. BWS Financial reiterated a "top pick" rating and set a $110.00 price target on shares of Innodata in a research report on Friday, April 10th. Wedbush upped their price target on Innodata from $80.00 to $100.00 and gave the stock an "outperform" rating in a report on Thursday, May 14th. Finally, Wall Street Zen raised Innodata from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $105.00.

Innodata Stock Performance

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 stock has a fifty day moving average price of $49.46 and a two-hundred day moving average price of $53.22. The company has a market capitalization of $2.86 billion, a price-to-earnings ratio of 78.35 and a beta of 2.40.

Innodata (NASDAQ:INOD - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The technology company reported $0.42 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $76.47 million. During the same quarter last year, the company earned $0.22 earnings per share. The business's revenue for the quarter was up 54.5% compared to the same quarter last year. As a group, analysts forecast that Innodata Inc. will post 0.99 EPS for the current fiscal year.

Institutional Investors Weigh In On Innodata

Hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its position in shares of Innodata by 0.8% in the third quarter. Vanguard Group Inc. now owns 1,840,491 shares of the technology company's stock valued at $141,847,000 after buying an additional 15,036 shares during the last quarter. Geode Capital Management LLC boosted its position in Innodata by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 752,795 shares of the technology company's stock worth $38,362,000 after acquiring an additional 2,407 shares during the last quarter. State Street Corp boosted its position in Innodata by 2.8% during the fourth quarter. State Street Corp now owns 711,180 shares of the technology company's stock worth $36,235,000 after acquiring an additional 19,484 shares during the last quarter. Dimensional Fund Advisors LP grew its stake in Innodata by 32.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 583,239 shares of the technology company's stock worth $22,517,000 after acquiring an additional 142,192 shares during the period. Finally, Wellington Management Group LLP raised its holdings in Innodata by 8.1% in the 4th quarter. Wellington Management Group LLP now owns 571,987 shares of the technology company's stock valued at $29,143,000 after acquiring an additional 42,847 shares during the last quarter. 30.75% of the stock is owned by institutional investors and hedge funds.

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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