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

Key Points

• Innodata saw unusually heavy call-option activity: Investors purchased 17,030 call options, 263% above the average daily volume of 4,696.
• The stock fell sharply to $43.98 during Tuesday trading, while volume surged to 7.8 million shares. Despite the decline, the company reported quarterly EPS and revenue above analyst expectations, with revenue up 57.8% year over year.
• Analyst sentiment remains moderately bullish: Innodata has a consensus “Moderate Buy” rating and an average price target of $116.67, although some firms recently downgraded the stock to “Hold.”

Innodata Inc. (NASDAQ:INOD - Get Free Report) was the recipient of unusually large options trading activity on Tuesday. Stock investors acquired 17,030 call options on the company. This represents an increase of 263% compared to the average daily volume of 4,696 call options.

Innodata Stock Performance

Shares of INOD traded down $15.93 during mid-day trading on Tuesday, hitting $43.98. The company's stock had a trading volume of 7,802,163 shares, compared to its average volume of 1,500,222. Innodata has a one year low of $34.23 and a one year high of $125.14. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.73 and a current ratio of 1.73. The firm has a market capitalization of $1.51 billion, a PE ratio of 33.24 and a beta of 2.98. The stock's 50-day moving average is $60.25 and its two-hundred day moving average is $61.96.

Innodata (NASDAQ:INOD - Get Free Report) last announced its earnings results on Thursday, August 6th. The technology company reported $0.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.21 by $0.20. The business had revenue of $92.14 million for the quarter, compared to analyst estimates of $86.31 million. Innodata had a net margin of 14.66% and a return on equity of 37.79%. Innodata's revenue was up 57.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.20 earnings per share. As a group, sell-side analysts anticipate that Innodata will post 1.35 EPS for the current year.

Insiders Place Their Bets

In related news, Director Louise Forlenza sold 10,000 shares of Innodata stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $53.54, for a total value of $535,400.00. Following the transaction, the director owned 5,424 shares of the company's stock, valued at approximately $290,400.96. This trade represents a 64.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 11.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in INOD. Janus Henderson Group PLC lifted its stake in shares of Innodata by 13.8% in the first quarter. Janus Henderson Group PLC now owns 526,012 shares of the technology company's stock valued at $20,315,000 after buying an additional 63,779 shares during the period. Royal Bank of Canada increased its stake in Innodata by 16.7% during the first quarter. Royal Bank of Canada now owns 169,054 shares of the technology company's stock valued at $6,528,000 after acquiring an additional 24,216 shares during the period. Rathbones Group PLC increased its stake in Innodata by 20.8% during the first quarter. Rathbones Group PLC now owns 144,247 shares of the technology company's stock valued at $5,571,000 after acquiring an additional 24,837 shares during the period. Bank of New York Mellon Corp acquired a new position in Innodata in the 2nd quarter valued at approximately $7,262,000. Finally, Allianz Asset Management GmbH acquired a new position in Innodata in the 2nd quarter valued at approximately $1,396,000. Institutional investors own 30.75% of the company's stock.

Analyst Upgrades and Downgrades

INOD has been the subject of several research reports. Yorkville Ives began coverage on shares of Innodata in a report on Monday, October 5th. They set an "outperform" rating and a $90.00 price target for the company. Weiss Ratings downgraded shares of Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. Zacks Research lowered shares of Innodata from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 11th. Finally, BWS Financial restated a "top pick" rating and set a $140.00 price target on shares of Innodata in a report on Friday, September 18th. One analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Innodata presently has a consensus rating of "Moderate Buy" and a consensus target price of $116.67.

About Innodata

Innodata Inc NASDAQ: INOD is a global data engineering and technology company that helps organizations prepare, manage and use information for digital transformation and artificial intelligence initiatives. Its services are designed to support the development, training, evaluation and deployment of AI and machine-learning systems.

The company provides data annotation and labeling, data collection and preparation, content transformation, document processing, natural-language services, and generative AI support.

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