Innodata (NASDAQ:INOD) Trading Down 7.2% - What's Next?

Key Points

• Innodata Inc. shares fell by 7.2%, reaching a low of $40.22, with trading volume down 8% compared to the average session.
• Despite the decline, Innodata maintains a consensus rating of "Moderate Buy" with an average target price of $55.00, though analyst price targets vary significantly.
• The company reported 79.7% year-over-year revenue growth with earnings per share of $0.20, surpassing analyst expectations of $0.11 for the quarter.

Innodata Inc. (NASDAQ:INOD - Get Free Report)'s share price traded down 7.2% during mid-day trading on Monday . The company traded as low as $40.22 and last traded at $40.41. 2,036,775 shares were traded during mid-day trading, a decline of 8% from the average session volume of 2,205,326 shares. The stock had previously closed at $43.53.

Analyst Ratings Changes

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

Innodata Stock Performance

The company has a 50-day moving average price of $47.40 and a two-hundred day moving average price of $43.26. The stock has a market capitalization of $1.28 billion, a P/E ratio of 32.31 and a beta of 2.75. The company has a quick ratio of 2.87, a current ratio of 2.87 and a debt-to-equity ratio of 0.09.

Innodata (NASDAQ:INOD - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The technology company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.09. Innodata had a return on equity of 54.27% and a net margin of 18.71%. The firm had revenue of $58.39 million for the quarter, compared to analysts' expectations of $56.35 million. The firm's quarterly revenue was up 79.7% on a year-over-year basis. Equities analysts expect that Innodata Inc. will post 0.81 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Farther Finance Advisors LLC purchased a new stake in Innodata in the second quarter worth approximately $36,000. Creative Financial Designs Inc. ADV purchased a new stake in Innodata in the first quarter worth approximately $29,000. Toth Financial Advisory Corp boosted 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 Innodata in the first quarter worth approximately $52,000. Finally, Pinnacle Investment Management Ltd purchased a new stake in Innodata in the second quarter worth approximately $77,000. 30.75% of the stock is currently owned by institutional investors.

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.

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