Innodata (NASDAQ:INOD) Stock Price Down 5.4% - Here's Why

Key Points

• Innodata shares fell 5.4% to $66.32, with trading volume about 30% below the stock’s average daily volume.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $130; however, Weiss Ratings and Zacks Research recently downgraded the stock to “Hold.”
• The company reported strong quarterly results, including $0.41 in EPS versus $0.21 expected and 57.8% year-over-year revenue growth to $92.14 million. A director also sold 10,000 shares, reducing her ownership by 64.83%.

Innodata Inc. (NASDAQ:INOD - Get Free Report)'s stock price fell 5.4% on Monday. The company traded as low as $65.35 and last traded at $66.32. 1,061,609 shares were traded during trading, a decline of 30% from the average session volume of 1,507,843 shares. The stock had previously closed at $70.07.

Analysts Set New Price Targets

A number of analysts have issued reports on the company. Weiss Ratings lowered Innodata from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Friday, July 31st. BWS Financial reiterated a "top pick" rating and issued a $140.00 price objective on shares of Innodata in a report on Friday, September 18th. Finally, Zacks Research lowered Innodata from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat.com, Innodata presently has a consensus rating of "Moderate Buy" and an average price target of $130.00.

Innodata Stock Performance

The stock has a 50-day moving average price of $61.07 and a 200 day moving average price of $66.14. The company has a quick ratio of 1.73, a current ratio of 1.73 and a debt-to-equity ratio of 0.06. The firm has a market capitalization of $2.30 billion, a price-to-earnings ratio of 50.27 and a beta of 2.98.

Innodata (NASDAQ:INOD - Get Free Report) last issued its quarterly 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. Innodata had a net margin of 14.66% and a return on equity of 37.79%. The company had revenue of $92.14 million during the quarter, compared to the consensus estimate of $86.31 million. During the same quarter in the previous year, the firm earned $0.20 earnings per share. The firm's quarterly revenue was up 57.8% on a year-over-year basis. On average, analysts forecast that Innodata Inc. will post 1.18 EPS for the current year.

Insider Activity

In related news, Director Louise Forlenza sold 10,000 shares of the business's stock in a transaction 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 owned 5,424 shares in the company, valued at approximately $290,400.96. The trade was a 64.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 11.80% of the company's stock.

Institutional Trading of Innodata

Hedge funds and other institutional investors have recently bought and sold shares of the business. Compass Financial Management LLC purchased a new position in shares of Innodata in the 2nd quarter valued at about $26,000. Ancora Advisors LLC acquired a new stake in Innodata during the 2nd quarter worth $36,000. Fifth Third Bancorp purchased a new stake in Innodata in the first quarter valued at $45,000. Nykredit A S purchased a new stake in Innodata in the second quarter valued at $88,000. Finally, Rockefeller Capital Management L.P. boosted its stake 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 valued at $62,000 after acquiring an additional 690 shares in the last quarter. 30.75% of the stock is currently owned by institutional investors and hedge funds.

About Innodata

Innodata Inc NASDAQ: INOD is a data engineering and artificial intelligence services company that helps organizations develop, train and deploy AI systems. Its work includes preparing and managing data, creating training datasets, evaluating AI model outputs and supporting the development of large language models and other machine-learning applications.

The company provides services such as data annotation and labeling, model evaluation, generative AI and natural-language processing support, content transformation, and data management.

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.