Stock Traders Purchase High Volume of Innodata Put Options (NASDAQ:INOD)

Key Points

• Unusual options activity: Traders bought 25,666 Innodata put options on Friday, a surge of 351% above the normal volume of 5,687, signaling heightened bearish speculation.
• Heavy insider selling: Innodata CFO Marissa B. Espineli and CEO Jack Abuhoff recently sold significant blocks of shares, and insiders have sold 1.47 million shares worth about $144 million over the last 90 days.
• Strong fundamentals and analyst support: Despite the options activity, Innodata beat earnings and revenue estimates in its latest quarter, and Wall Street currently has a consensus Buy rating with a $130 target price.

Innodata Inc. (NASDAQ:INOD - Get Free Report) was the target of some unusual options trading on Friday. Stock investors acquired 25,666 put options on the company. This is an increase of 351% compared to the typical volume of 5,687 put options.

Insider Transactions at Innodata

In related news, CFO Marissa B. Espineli sold 19,667 shares of Innodata stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $105.88, for a total value of $2,082,341.96. Following the completion of the sale, the chief financial officer directly owned 28,014 shares in the company, valued at $2,966,122.32. The trade was a 41.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Jack Abuhoff sold 200,000 shares of Innodata stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $110.20, for a total value of $22,040,000.00. Following the completion of the sale, the chief executive officer owned 1,340,456 shares of the company's stock, valued at $147,718,251.20. The trade was a 12.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,472,885 shares of company stock valued at $143,998,492 over the last 90 days. 11.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Handelsbanken Fonder AB boosted its holdings in Innodata by 32.1% in the second quarter. Handelsbanken Fonder AB now owns 10,300 shares of the technology company's stock worth $778,000 after acquiring an additional 2,500 shares in the last quarter. Hennion & Walsh Asset Management Inc. increased its holdings in shares of Innodata by 72.9% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 24,328 shares of the technology company's stock valued at $1,839,000 after acquiring an additional 10,257 shares in the last quarter. City Center Advisors LLC purchased a new position in shares of Innodata in the 2nd quarter valued at approximately $495,000. Rathbones Group PLC boosted its stake in Innodata by 20.8% in the 1st quarter. Rathbones Group PLC now owns 144,247 shares of the technology company's stock worth $5,571,000 after purchasing an additional 24,837 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its stake in Innodata by 7.7% in the 1st quarter. NewEdge Advisors LLC now owns 14,292 shares of the technology company's stock worth $552,000 after purchasing an additional 1,023 shares in the last quarter. 30.75% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

INOD has been the subject of several recent research reports. Zacks Research upgraded shares of Innodata from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 7th. BWS Financial reiterated a "buy" rating on shares of Innodata in a research note on Monday, June 15th. Wall Street Zen raised shares of Innodata from a "sell" rating to a "hold" rating in a report on Saturday, March 21st. Weiss Ratings raised shares of Innodata from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, June 3rd. Finally, Wedbush upped their target price on Innodata from $100.00 to $120.00 and gave the stock an "outperform" rating in a report on Thursday, June 4th. Two research analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, Innodata presently has a consensus rating of "Buy" and a consensus target price of $130.00.

Innodata Stock Up 1.0%

Innodata stock traded up $0.62 during trading hours on Friday, reaching $61.59. The stock had a trading volume of 446,132 shares, compared to its average volume of 1,543,745. The company has a market cap of $2.01 billion, a price-to-earnings ratio of 55.49 and a beta of 2.89. The business's 50 day moving average price is $89.23 and its 200-day moving average price is $62.44. Innodata has a 52 week low of $34.23 and a 52 week high of $125.14. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.49 and a quick ratio of 2.49.

Innodata (NASDAQ:INOD - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The technology company reported $0.42 earnings per share for the quarter, beating analysts' consensus estimates of $0.08 by $0.34. The business had revenue of $90.10 million for the quarter, compared to analysts' expectations of $76.47 million. Innodata had a net margin of 13.86% and a return on equity of 37.49%. The company's revenue was up 54.5% compared to the same quarter last year. During the same period last year, the business earned $0.22 EPS. Sell-side analysts anticipate that Innodata will post 1.14 EPS for the current year.

About Innodata

Innodata Inc NASDAQ: INOD is a digital services and technology company that specializes in data engineering and artificial intelligence solutions. Founded in 1988 and headquartered in East Brunswick, New Jersey, the company provides structured content and digital transformation services to publishers, media companies, legal and compliance organizations, and other information-intensive industries. Innodata's platform enables clients to convert unstructured text, images and multimedia into high‐quality, machine‐readable formats that support search, analytics and AI model training.

The firm's offerings include content enrichment, metadata management, taxonomy development, digital asset management and data annotation services.

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