Innodata (NASDAQ:INOD) Shares Up 6% - Still a Buy?

Key Points

• Innodata shares rose 6% to about $64.74, with trading volume below its daily average. The stock has a $2.19 billion market capitalization and a high beta of 2.88.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $130; however, some firms recently downgraded the stock to “Hold.”
• Recent fundamentals were strong: quarterly EPS of $0.41 beat estimates of $0.21, revenue reached $92.14 million—up 57.8% year over year—and institutional investors own 30.75% of the shares.

Innodata Inc. (NASDAQ:INOD - Get Free Report) shares traded up 6% during trading on Tuesday . The stock traded as high as $64.23 and last traded at $64.7390. 740,627 shares traded hands during trading, a decline of 49% from the average daily volume of 1,463,980 shares. The stock had previously closed at $61.05.

Analyst Ratings Changes

Several brokerages have weighed in on INOD. Wedbush lifted their target price on Innodata from $100.00 to $120.00 and gave the company an "outperform" rating in a research note on Thursday, June 4th. Zacks Research lowered shares of Innodata from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. BWS Financial reissued a "top pick" rating and issued a $140.00 price objective on shares of Innodata in a research note on Friday. Finally, Weiss Ratings downgraded shares of Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $130.00.

Innodata Stock Performance

The stock has a 50 day moving average of $59.72 and a two-hundred day moving average of $64.54. The stock has a market capitalization of $2.19 billion, a PE ratio of 48.17 and a beta of 2.88. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.73 and a quick ratio of 1.73.

Innodata (NASDAQ:INOD - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The technology company reported $0.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.20. Innodata had a return on equity of 37.79% and a net margin of 14.66%.The firm had revenue of $92.14 million during the quarter, compared to analysts' expectations of $86.31 million. During the same quarter in the prior year, the business posted $0.20 earnings per share. Innodata's revenue was up 57.8% compared to the same quarter last year. Research analysts expect that Innodata Inc. will post 1.18 EPS for the current fiscal year.

Insider Buying and Selling

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

Hedge Funds Weigh In On Innodata

Several hedge funds and other institutional investors have recently bought and sold shares of INOD. Dimensional Fund Advisors LP increased its position in shares of Innodata by 32.2% in the first quarter. Dimensional Fund Advisors LP now owns 583,239 shares of the technology company's stock valued at $22,517,000 after buying an additional 142,192 shares in the last quarter. Janus Henderson Group PLC increased its holdings in Innodata by 13.8% during the 1st quarter. Janus Henderson Group PLC now owns 526,012 shares of the technology company's stock valued at $20,315,000 after acquiring an additional 63,779 shares in the last quarter. Next Century Growth Investors LLC raised its position in Innodata by 107.5% during the fourth quarter. Next Century Growth Investors LLC now owns 365,835 shares of the technology company's stock worth $18,639,000 after acquiring an additional 189,488 shares during the last quarter. Royal Bank of Canada raised its position in Innodata by 16.7% during the first quarter. Royal Bank of Canada now owns 169,054 shares of the technology company's stock worth $6,528,000 after acquiring an additional 24,216 shares during the last quarter. Finally, Rathbones Group PLC lifted its holdings in shares of Innodata by 20.8% in the first quarter. Rathbones Group PLC now owns 144,247 shares of the technology company's stock valued at $5,571,000 after purchasing an additional 24,837 shares in the last quarter. 30.75% of the stock is owned by institutional investors and hedge funds.

About Innodata

Innodata Inc is a global data engineering and artificial intelligence services company that helps organizations prepare, manage and use data for digital applications. Its services support the development and deployment of machine learning and generative artificial intelligence systems, including data collection, annotation, labeling, curation, evaluation and model testing.

The company also provides content transformation and information management services. These offerings can include converting and structuring complex content, improving data quality, automating business processes and developing customized data workflows.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.