Innodata (NASDAQ:INOD) Trading Up 12.6% After Earnings Beat

Key Points

• Innodata's stock price increased by 12.6% during mid-day trading, reaching a high of $54.85 after closing at $48.49 previously.
• Analysts have mixed views on Innodata, with Wedbush lowering its price target from $75 to $58 while BWS Financial maintains a buy rating with a target of $74.
• Innodata reported a quarterly EPS of $0.22, surpassing estimates, with revenue rising by 120.1% year-over-year to $58.34 million.

Innodata Inc. (NASDAQ:INOD - Get Free Report) shares shot up 12.6% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $54.85 and last traded at $54.58. 1,575,199 shares traded hands during trading, a decline of 25% from the average session volume of 2,099,195 shares. The stock had previously closed at $48.49.

The technology company reported $0.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.11 by $0.09. Innodata had a return on equity of 59.61% and a net margin of 18.71%. The business had revenue of $58.39 million for the quarter, compared to the consensus estimate of $56.35 million. The company's quarterly revenue was up 79.7% on a year-over-year basis.

Analyst Ratings Changes

INOD has been the topic of a number of recent analyst reports. BWS Financial restated a "buy" rating and set a $74.00 target price on shares of Innodata in a report on Monday, June 16th. Wedbush decreased their price objective on shares of Innodata from $75.00 to $58.00 and set an "outperform" rating for the company in a research report on Friday, May 9th. One research analyst has rated the stock with a hold rating and five have given a buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $55.00.

Hedge Funds Weigh In On Innodata

Several large investors have recently modified their holdings of INOD. Raymond James Financial Inc. acquired a new position in Innodata in the 4th quarter valued at about $483,000. Commonwealth Equity Services LLC acquired a new position in Innodata in the 4th quarter valued at $239,000. American Century Companies Inc. grew its holdings in Innodata by 41.2% in the 4th quarter. American Century Companies Inc. now owns 46,307 shares of the technology company's stock valued at $1,830,000 after buying an additional 13,518 shares in the last quarter. Vanguard Group Inc. increased its position in Innodata by 7.7% during the 4th quarter. Vanguard Group Inc. now owns 1,639,724 shares of the technology company's stock worth $64,802,000 after buying an additional 117,000 shares during the period. Finally, JPMorgan Chase & Co. lifted its holdings in shares of Innodata by 2,038.4% during the fourth quarter. JPMorgan Chase & Co. now owns 308,095 shares of the technology company's stock worth $12,176,000 after buying an additional 293,687 shares in the last quarter. 30.75% of the stock is owned by institutional investors.

Innodata Stock Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 2.36 and a quick ratio of 2.36. The stock's 50-day moving average price is $46.87 and its 200-day moving average price is $43.03. The company has a market cap of $1.43 billion, a P/E ratio of 36.26 and a beta of 2.75.

Innodata Company Profile

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.