Innodata (NASDAQ:INOD) Trading Down 6.3% - Should You Sell?

Key Points

• Innodata shares fell 6.3% on Thursday, trading as low as $77.50 after closing at $81.55, with volume well below average.
• Despite the drop, analysts remain generally positive: the stock carries a Moderate Buy rating and an average price target of $130, with Wedbush recently raising its target to $120 and reiterating an outperform rating.
• The company posted strong quarterly results, reporting EPS of $0.42 versus the $0.08 consensus and revenue growth of 54.5% year over year, while insiders have also been active sellers in recent months.

Innodata Inc. (NASDAQ:INOD - Get Free Report) shares fell 6.3% during trading on Thursday . The company traded as low as $77.50 and last traded at $76.4420. Approximately 323,265 shares changed hands during trading, a decline of 80% from the average daily volume of 1,578,557 shares. The stock had previously closed at $81.55.

Analyst Ratings Changes

INOD has been the subject of a number of research analyst reports. Wall Street Zen upgraded shares of Innodata from a "sell" rating to a "hold" rating in a research report on Saturday, March 21st. BWS Financial restated a "buy" rating on shares of Innodata in a report on Monday, June 15th. Weiss Ratings raised shares of Innodata from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, June 3rd. Finally, Wedbush lifted their price objective on Innodata from $100.00 to $120.00 and gave the company an "outperform" rating in a research report on Thursday, June 4th. One research 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, the stock has an average rating of "Moderate Buy" and an average target price of $130.00.

Innodata Stock Down 11.0%

The company has a debt-to-equity ratio of 0.07, a current ratio of 2.49 and a quick ratio of 2.49. The business has a 50 day moving average price of $80.95 and a 200 day moving average price of $60.53. The firm has a market capitalization of $2.37 billion, a P/E ratio of 64.88 and a beta of 2.83.

Innodata (NASDAQ:INOD - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The technology company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.08 by $0.34. The company had revenue of $90.10 million during the quarter, compared to analyst estimates of $76.47 million. Innodata had a return on equity of 37.49% and a net margin of 13.86%.The company's quarterly revenue was up 54.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.22 earnings per share. On average, analysts predict that Innodata Inc. will post 1.14 earnings per share for the current year.

Insider Activity at Innodata

In other Innodata news, CEO Jack Abuhoff sold 200,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $110.20, for a total value of $22,040,000.00. Following the completion of the sale, the chief executive officer owned 1,340,456 shares in the company, valued at approximately $147,718,251.20. This trade represents a 12.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Ashok Mishra sold 242,901 shares of the company's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $90.15, for a total value of $21,897,525.15. Following the completion of the transaction, the chief operating officer owned 95,179 shares of the company's stock, valued at $8,580,386.85. The trade was a 71.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 1,472,885 shares of company stock valued at $143,998,492. Insiders own 11.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. AQR Capital Management LLC lifted its holdings in Innodata by 446.4% during the 1st quarter. AQR Capital Management LLC now owns 90,968 shares of the technology company's stock valued at $3,266,000 after purchasing an additional 74,320 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in shares of Innodata by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 16,085 shares of the technology company's stock valued at $577,000 after purchasing an additional 711 shares during the last quarter. Millennium Management LLC boosted its stake in Innodata by 30.7% in the first quarter. Millennium Management LLC now owns 142,608 shares of the technology company's stock valued at $5,120,000 after acquiring an additional 33,473 shares during the last quarter. JPMorgan Chase & Co. boosted its position in shares of Innodata by 16.0% in the 2nd quarter. JPMorgan Chase & Co. now owns 20,375 shares of the technology company's stock worth $1,044,000 after purchasing an additional 2,816 shares during the last quarter. Finally, Russell Investments Group Ltd. grew its position in shares of Innodata by 1,527.3% during the 2nd quarter. Russell Investments Group Ltd. now owns 9,422 shares of the technology company's stock worth $483,000 after buying an additional 8,843 shares during the period. 30.75% of the stock is owned by institutional investors.

Innodata Company Profile

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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