Innodata (NASDAQ:INOD) Shares Up 7.6% - Time to Buy?

Key Points

• Innodata shares rose 7.6% to about $70.76, despite trading volume falling 57% below its average. The stock has a market capitalization of approximately $2.47 billion and a high beta of 2.88.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $130.00. Price targets range from $120 to $140, although Zacks Research and Weiss Ratings recently downgraded the stock to “Hold.”
• Innodata reported strong quarterly results, posting adjusted EPS of $0.41 versus the $0.21 consensus and revenue of $92.14 million, up 57.8% year over year. However, a director recently sold 10,000 shares, while institutional investors own 30.75% of the company.

Innodata Inc. (NASDAQ:INOD - Get Free Report)'s share price rose 7.6% on Thursday. The stock traded as high as $69.62 and last traded at $70.7620. Approximately 640,074 shares traded hands during trading, a decline of 57% from the average daily volume of 1,501,046 shares. The stock had previously closed at $65.76.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on INOD. Zacks Research lowered shares of Innodata from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 11th. Wedbush raised their price target on shares of Innodata from $100.00 to $120.00 and gave the stock an "outperform" rating in a report on Thursday, June 4th. Weiss Ratings lowered Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. Finally, BWS Financial reaffirmed a "top pick" rating and issued a $140.00 target price on shares of Innodata in a research report on Friday, September 18th. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $130.00.

Innodata Trading Up 9.2%

The stock's fifty day simple moving average is $60.55 and its two-hundred day simple moving average is $65.75. The firm has a market cap of $2.47 billion, a PE ratio of 54.26 and a beta of 2.88. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 0.06.

Innodata (NASDAQ:INOD - Get Free Report) last released its earnings results on Thursday, August 6th. The technology company reported $0.41 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $86.31 million. During the same period in the prior year, the firm posted $0.20 earnings per share. The company's quarterly revenue was up 57.8% on a year-over-year basis. On average, sell-side analysts forecast that Innodata Inc. will post 1.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Louise Forlenza sold 10,000 shares of the business's stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $53.54, for a total transaction of $535,400.00. Following the completion of the transaction, the director directly owned 5,424 shares of the company's stock, valued at $290,400.96. The trade was a 64.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 11.80% of the company's stock.

Hedge Funds Weigh In On Innodata

Several hedge funds and other institutional investors have recently modified their holdings of INOD. Compass Financial Management LLC purchased a new position in shares of Innodata in the 2nd quarter worth $26,000. Ancora Advisors LLC bought a new position in Innodata in the second quarter valued at about $36,000. Fifth Third Bancorp bought a new position in Innodata in the first quarter valued at about $45,000. Nykredit A S purchased a new position in Innodata in the second quarter worth about $88,000. Finally, Rockefeller Capital Management L.P. boosted its position in Innodata by 132.7% in the fourth quarter. Rockefeller Capital Management L.P. now owns 1,210 shares of the technology company's stock worth $62,000 after purchasing an additional 690 shares during the last quarter. 30.75% of the stock is owned by institutional investors.

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.

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