Investors Buy Large Volume of Call Options on Innodata (NASDAQ:INOD)

Key Points

• Unusually heavy call option activity was seen in Innodata, with investors buying 7,880 call contracts on Monday, about 138% above the stock’s normal daily volume.
• The stock surged sharply, rising 26.4% to $107.32 on heavy trading volume, far above its average, as the shares moved close to their 52-week high of $113.53.
• Recent earnings and analyst sentiment were strong, with Innodata beating expectations on both EPS and revenue in its latest quarter and several analysts maintaining or raising positive price targets, including Wedbush’s increase to $80 and BWS Financial’s $110 target.

Innodata Inc. (NASDAQ:INOD - Get Free Report) saw unusually large options trading activity on Monday. Investors purchased 7,880 call options on the stock. This is an increase of approximately 138% compared to the typical daily volume of 3,310 call options.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on INOD shares. Wedbush lifted their price objective on shares of Innodata from $75.00 to $80.00 and gave the stock an "outperform" rating in a research note on Friday. Wall Street Zen raised shares of Innodata from a "sell" rating to a "hold" rating in a research note on Saturday, March 21st. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Innodata in a research note on Friday, April 10th. Finally, BWS Financial reaffirmed a "top pick" rating and issued a $110.00 price objective on shares of Innodata in a research note on Friday, April 10th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, Innodata has an average rating of "Moderate Buy" and an average target price of $95.00.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Meeder Asset Management Inc. purchased a new position in Innodata during the first quarter valued at approximately $171,000. Dimensional Fund Advisors LP grew its position in Innodata by 32.2% during the first quarter. Dimensional Fund Advisors LP now owns 583,239 shares of the technology company's stock valued at $22,517,000 after purchasing an additional 142,192 shares in the last quarter. Parallel Advisors LLC grew its position in Innodata by 51.4% during the first quarter. Parallel Advisors LLC now owns 2,413 shares of the technology company's stock valued at $93,000 after purchasing an additional 819 shares in the last quarter. Allspring Global Investments Holdings LLC grew its position in Innodata by 10.3% during the first quarter. Allspring Global Investments Holdings LLC now owns 6,262 shares of the technology company's stock valued at $248,000 after purchasing an additional 587 shares in the last quarter. Finally, Teachers Retirement System of The State of Kentucky grew its position in Innodata by 64.1% during the first quarter. Teachers Retirement System of The State of Kentucky now owns 24,273 shares of the technology company's stock valued at $937,000 after purchasing an additional 9,483 shares in the last quarter. 30.75% of the stock is owned by hedge funds and other institutional investors.

Innodata Trading Up 26.4%

Shares of NASDAQ:INOD traded up $22.43 during mid-day trading on Monday, hitting $107.32. The stock had a trading volume of 5,385,988 shares, compared to its average volume of 1,416,418. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.49 and a current ratio of 2.49. The company has a market cap of $3.50 billion, a PE ratio of 97.78 and a beta of 2.40. Innodata has a 12-month low of $33.44 and a 12-month high of $113.53. The company's 50 day moving average is $42.73 and its 200-day moving average is $52.37.

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, beating the consensus estimate of $0.08 by $0.34. The business had revenue of $90.10 million during the quarter, compared to the consensus estimate of $76.47 million. Innodata had a net margin of 13.86% and a return on equity of 37.49%. The firm's quarterly revenue was up 54.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.22 EPS. On average, sell-side analysts predict that Innodata will post 0.93 EPS for the current year.

About Innodata

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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