Innodata (NASDAQ:INOD) Stock Price Down 4.8% - Here's Why

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 mid-day trading on Monday . The company traded as low as $43.03 and last traded at $42.81. Approximately 982,157 shares changed hands 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

A number of brokerages recently weighed in on INOD. Wedbush dropped their price objective on Innodata from $75.00 to $58.00 and set an "outperform" rating on the stock in a research report on Friday, May 9th. BWS Financial reaffirmed a "buy" rating and set a $74.00 price objective on shares of Innodata in a research report on Monday, June 16th. One research analyst has rated the stock with a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $55.00.

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 firm has a market cap of $1.38 billion, a price-to-earnings ratio of 34.91 and a beta of 2.75. The firm has a fifty day simple moving average of $46.87 and a two-hundred day simple moving average of $43.07.

Innodata (NASDAQ:INOD - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The technology company reported $0.20 earnings per share for the quarter, topping the consensus estimate of $0.11 by $0.09. The business had revenue of $58.39 million during the quarter, compared to the consensus estimate of $56.35 million. Innodata had a return on equity of 59.61% and a net margin of 18.71%. The business's quarterly revenue was up 79.7% on a year-over-year basis. On average, analysts expect that Innodata Inc. will post 0.81 EPS for the current year.

Institutional Inflows and Outflows

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