Innodata (NASDAQ:INOD) Stock Jumps 9.3% - Should You Buy?

Key Points

• Innodata shares jumped 9.3% to about $60.16, though trading volume was 82% below the average session volume.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $116.67; individual targets range from $90 to $140.
• The company reported strong quarterly momentum, including 57.8% year-over-year revenue growth, $0.41 in EPS versus a $0.21 estimate, and $92.14 million in revenue compared with expectations of $86.31 million.

Innodata Inc. (NASDAQ:INOD - Get Free Report) shares shot up 9.3% during trading on Wednesday. The company traded as high as $58.48 and last traded at $60.1640. Approximately 265,343 shares were traded during trading, a decline of 82% from the average session volume of 1,474,892 shares. The stock had previously closed at $55.04.

Analysts Set New Price Targets

Several research firms have recently commented on INOD. BWS Financial reaffirmed a "top pick" rating and issued a $140.00 price objective on shares of Innodata in a report on Friday, September 18th. Yorkville Ives assumed coverage on shares of Innodata in a report on Monday, October 5th. They set an "outperform" rating and a $90.00 target price for the company. Zacks Research lowered shares of Innodata from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 11th. Finally, Weiss Ratings downgraded Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Innodata presently has a consensus rating of "Moderate Buy" and a consensus price target of $116.67.

Innodata Stock Up 9.2%

The company has a current ratio of 1.73, a quick ratio of 1.73 and a debt-to-equity ratio of 0.06. The stock has a market cap of $2.07 billion, a PE ratio of 45.60 and a beta of 2.98. The business has a 50-day moving average price of $60.25 and a 200-day moving average price of $67.60.

Innodata (NASDAQ:INOD - Get Free Report) last announced its earnings results on Thursday, August 6th. The technology company reported $0.41 EPS for the quarter, beating 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 business 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 firm earned $0.20 earnings per share. The business's revenue was up 57.8% compared to the same quarter last year. As a group, analysts forecast that Innodata Inc. will post 1.35 earnings per share for the current year.

Insider Activity at Innodata

In other news, Director Louise Forlenza sold 10,000 shares of the company's stock in a transaction on 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 $290,400.96. This represents a 64.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 11.80% of the stock is currently owned by company insiders.

Institutional Trading of Innodata

A number of hedge funds and other institutional investors have recently modified their holdings of INOD. Dimensional Fund Advisors LP lifted its position in 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 during the last quarter. Bank of New York Mellon Corp purchased a new position in Innodata during the second quarter worth about $7,262,000. Janus Henderson Group PLC boosted its stake in Innodata by 13.8% during the first quarter. Janus Henderson Group PLC now owns 526,012 shares of the technology company's stock worth $20,315,000 after buying an additional 63,779 shares during the period. Bank of America Corp DE increased its position in shares of Innodata by 156.3% during the first quarter. Bank of America Corp DE now owns 102,268 shares of the technology company's stock valued at $3,950,000 after acquiring an additional 62,361 shares during the last quarter. Finally, Rathbones Group PLC raised its stake in shares of Innodata by 20.8% in the 1st 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. 30.75% of the stock is owned by institutional investors and hedge funds.

Innodata Company Profile

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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