Innodata (NASDAQ:INOD) Shares Down 4.8% - Should You Sell?

Key Points

• Innodata's stock dropped 4.8%, with shares trading as low as $43.03 and last at $42.81 on Monday, with trading volume down by 55% compared to the average.
• Wall Street analysts have mixed views: Wedbush lowered its price target from $75 to $58 while BWS Financial maintained a "buy" rating with a price target of $74, leading to a consensus target price of $55.
• Innodata reported quarterly earnings of $0.20 per share, exceeding estimates, with revenues up 79.7% year-over-year, and analysts project an EPS of 0.81 for the current year.

Innodata Inc. (NASDAQ:INOD - Get Free Report) shares were down 4.8% during trading on Monday . The company traded as low as $43.03 and last traded at $42.81. Approximately 982,157 shares were traded during trading, a decline of 55% from the average daily volume of 2,164,666 shares. The stock had previously closed at $44.96.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. BWS Financial reaffirmed a "buy" rating and issued a $74.00 price target on shares of Innodata in a report on Monday, June 16th. Wedbush decreased their price target on Innodata from $75.00 to $58.00 and set an "outperform" rating on the stock in a research note on Friday, May 9th. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $55.00.

Innodata Stock Up 1.7%

The stock has a market cap of $1.39 billion, a P/E ratio of 35.23 and a beta of 2.75. The company has a current ratio of 2.87, a quick ratio of 2.36 and a debt-to-equity ratio of 0.09. The company's 50 day moving average price is $47.31 and its two-hundred day moving average price is $43.18.

Innodata (NASDAQ:INOD - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The technology company reported $0.20 EPS for the quarter, beating analysts' consensus estimates 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 return on equity of 54.27% and a net margin of 18.71%. The firm's quarterly revenue was up 79.7% on a year-over-year basis. Equities analysts forecast that Innodata Inc. will post 0.81 earnings per share for the current year.

Institutional Trading of Innodata

A number of institutional investors have recently bought and sold shares of the stock. Farther Finance Advisors LLC purchased a new stake in Innodata in the second quarter worth $36,000. Creative Financial Designs Inc. ADV bought a new stake in shares of Innodata in the 1st quarter valued at about $29,000. Toth Financial Advisory Corp raised its stake in Innodata by 40.2% in the second quarter. Toth Financial Advisory Corp now owns 1,150 shares of the technology company's stock worth $59,000 after buying an additional 330 shares in the last quarter. KBC Group NV purchased a new stake in shares of Innodata during the 1st quarter worth $52,000. Finally, Pinnacle Investment Management Ltd purchased a new stake in shares of Innodata during the second quarter valued at about $77,000. 30.75% of the stock is currently owned by 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.