Innodata (NASDAQ:INOD) Shares Pass Above 200-Day Moving Average - Here's Why

Key Points

• Innodata shares crossed above their 200-day moving average of $62.95, reaching $63.99 before closing at $62.79. The stock has a $2.16 billion market capitalization and a high beta of 2.92.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and an average price target of $130.00, although Weiss Ratings and Zacks Research recently downgraded the stock to “Hold.”
• Innodata reported strong quarterly results, earning $0.41 per share versus a $0.21 estimate and generating $92.14 million in revenue, up 57.8% year over year. However, insiders sold $49.4 million worth of shares over the past 90 days.

Innodata Inc. (NASDAQ:INOD - Get Free Report) crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $62.95 and traded as high as $63.99. Innodata shares last traded at $62.79, with a volume of 758,680 shares traded.

Wall Street Analyst Weigh In

INOD has been the subject of a number of recent research reports. Weiss Ratings downgraded Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, July 31st. BWS Financial reissued a "top pick" rating and issued a $140.00 price objective on shares of Innodata in a report on Friday, August 7th. Wedbush raised their price objective on shares of Innodata from $100.00 to $120.00 and gave the stock an "outperform" rating in a research report on Thursday, June 4th. Finally, Zacks Research lowered shares of Innodata from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, Innodata has an average rating of "Moderate Buy" and an average target price of $130.00.

Innodata Price Performance

The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.73 and a current ratio of 1.73. The company has a market cap of $2.16 billion, a PE ratio of 47.57 and a beta of 2.92. The company's 50-day simple moving average is $70.68 and its 200 day simple moving average is $62.95.

Innodata (NASDAQ:INOD - Get Free Report) last announced 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 business had revenue of $92.14 million during the quarter, compared to the consensus estimate of $86.31 million. Innodata had a return on equity of 37.79% and a net margin of 14.66%.The business's revenue for the quarter was up 57.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.20 earnings per share. On average, sell-side analysts predict that Innodata Inc. will post 1.18 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Jack Abuhoff sold 200,000 shares of Innodata stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $110.20, for a total transaction of $22,040,000.00. Following the completion of the sale, the chief executive officer directly owned 1,340,456 shares of the company's stock, valued at approximately $147,718,251.20. The trade was a 12.98% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, COO Ashok Mishra sold 38,666 shares of Innodata stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $114.34, for a total transaction of $4,421,070.44. Following the sale, the chief operating officer directly owned 83,179 shares of the company's stock, valued at approximately $9,510,686.86. This trade represents a 31.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 457,978 shares of company stock worth $49,413,600 in the last 90 days. Corporate insiders own 11.80% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. HRT Financial LP grew its position in shares of Innodata by 746.1% in the 2nd quarter. HRT Financial LP now owns 218,635 shares of the technology company's stock valued at $11,198,000 after buying an additional 192,794 shares during the last quarter. Next Century Growth Investors LLC increased its position 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 valued at $18,639,000 after acquiring an additional 189,488 shares during the period. First Trust Advisors LP acquired a new position in shares of Innodata in the second quarter valued at approximately $7,825,000. Dimensional Fund Advisors LP increased 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 valued at $22,517,000 after buying an additional 142,192 shares during the period. Finally, RFG Advisory LLC acquired a new position in shares of Innodata during the fourth quarter worth about $5,750,000. 30.75% of the stock is owned by institutional investors and hedge funds.

About Innodata

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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