Innodata (NASDAQ:INOD) Shares Gap Down - Here's What Happened

Key Points

• Innodata's share price significantly dropped from a previous close of $81.68 to an opening of $76.74, before last trading at $78.25 with substantial trading volume of 768,088 shares.
• Research firms have shown optimism, with BWS Financial raising their price target to $110.00 and the stock receiving a consensus rating of "Moderate Buy".
• The company's quarterly earnings exceeded expectations, reporting $0.20 earnings per share on revenue of $58.39 million, a 79.7% year-over-year increase.

Innodata Inc. (NASDAQ:INOD - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $81.68, but opened at $76.74. Innodata shares last traded at $78.25, with a volume of 768,088 shares changing hands.

Analysts Set New Price Targets

A number of research firms have weighed in on INOD. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Innodata in a research note on Tuesday. BWS Financial lifted their price target on shares of Innodata from $74.00 to $110.00 and gave the stock a "buy" rating in a report on Friday. Four equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $72.00.

Innodata Trading Down 5.3%

The company has a debt-to-equity ratio of 0.09, a current ratio of 2.87 and a quick ratio of 2.87. The stock has a market capitalization of $2.46 billion, a PE ratio of 62.48 and a beta of 2.96. The stock's 50 day simple moving average is $57.43 and its two-hundred day simple moving average is $47.31.

Innodata (NASDAQ:INOD - Get Free Report) last posted its earnings results on Thursday, July 31st. The technology company reported $0.20 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.11 by $0.09. The business had revenue of $58.39 million for the quarter, compared to analysts' expectations of $56.35 million. Innodata had a net margin of 18.71% and a return on equity of 54.27%. Innodata's quarterly revenue was up 79.7% compared to the same quarter last year. On average, sell-side analysts expect that Innodata Inc. will post 0.81 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Vanguard Group Inc. increased its stake in Innodata by 7.4% during the 1st quarter. Vanguard Group Inc. now owns 1,760,354 shares of the technology company's stock valued at $63,197,000 after purchasing an additional 120,630 shares in the last quarter. Yong Rong HK Asset Management Ltd bought a new stake in shares of Innodata in the first quarter worth approximately $28,548,000. Wellington Management Group LLP grew its stake in shares of Innodata by 177.8% in the first quarter. Wellington Management Group LLP now owns 793,041 shares of the technology company's stock worth $28,470,000 after acquiring an additional 507,540 shares during the period. Geode Capital Management LLC grew its stake in shares of Innodata by 11.0% in the second quarter. Geode Capital Management LLC now owns 700,217 shares of the technology company's stock worth $35,869,000 after acquiring an additional 69,475 shares during the period. Finally, Driehaus Capital Management LLC grew its stake in shares of Innodata by 34.3% in the first quarter. Driehaus Capital Management LLC now owns 567,866 shares of the technology company's stock worth $20,386,000 after acquiring an additional 144,972 shares during the period. 30.75% of the stock is owned by hedge funds and other institutional investors.

About Innodata

Innodata Inc operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services.

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