Innodata (NASDAQ:INOD) Shares 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 stock price traded down 7.2% on Monday . The stock traded as low as $40.22 and last traded at $40.41. 2,036,775 shares traded hands 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

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

Innodata Price Performance

The company has a debt-to-equity ratio of 0.09, a current ratio of 2.87 and a quick ratio of 2.87. The company's 50 day moving average is $46.94 and its 200 day moving average is $43.35. The stock has a market cap of $1.28 billion, a price-to-earnings ratio of 32.41 and a beta of 2.75.

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 (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.09. Innodata had a net margin of 18.71% and a return on equity of 54.27%. The company had revenue of $58.39 million for the quarter, compared to the consensus estimate of $56.35 million. The company's revenue for the quarter was up 79.7% compared to the same quarter last year. Research analysts forecast that Innodata Inc. will post 0.81 earnings per share for the current fiscal year.

Institutional Investors Weigh In On 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 during the second quarter worth approximately $36,000. Creative Financial Designs Inc. ADV purchased a new stake in Innodata during the first quarter worth approximately $29,000. Toth Financial Advisory Corp grew its stake in Innodata by 40.2% during 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 during the period. KBC Group NV purchased a new stake in Innodata during the first quarter worth approximately $52,000. Finally, Pinnacle Investment Management Ltd purchased a new stake in Innodata during the second quarter worth approximately $77,000. 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.