Innodata (NASDAQ:INOD) Shares Down 16.3% – Here’s Why

Innodata Inc. (NASDAQ:INOD)’s stock price traded down 16.3% during mid-day trading on Friday . The company traded as low as $102.54 and last traded at $101.64. 1,293,561 shares changed hands during trading, a decline of 20% from the average session volume of 1,613,140 shares. The stock had previously closed at $121.50.

Analysts Set New Price Targets

A number of research firms have commented on INOD. BWS Financial reaffirmed a “top pick” rating and set a $110.00 price target on shares of Innodata in a research report on Friday, April 10th. Weiss Ratings raised Innodata from a “hold (c)” rating to a “hold (c+)” rating in a research note on Wednesday. Wall Street Zen upgraded Innodata from a “sell” rating to a “hold” rating in a report on Saturday, March 21st. Finally, Wedbush raised their price target on Innodata from $100.00 to $120.00 and gave the stock an “outperform” rating in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $115.00.

Innodata Price Performance

The company has a market cap of $3.33 billion, a PE ratio of 91.86 and a beta of 2.83. The firm’s 50-day moving average is $64.36 and its 200-day moving average is $56.43. The company has a quick ratio of 2.49, a current ratio of 2.49 and a debt-to-equity ratio of 0.07.

Innodata (NASDAQ:INOD) last posted its quarterly earnings data on Thursday, May 7th. The technology company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.08 by $0.34. Innodata had a return on equity of 37.49% and a net margin of 13.86%.The business had revenue of $90.10 million for the quarter, compared to analysts’ expectations of $76.47 million. During the same period in the previous year, the firm posted $0.22 EPS. The business’s revenue was up 54.5% on a year-over-year basis. On average, equities analysts anticipate that Innodata Inc. will post 1.14 EPS for the current year.

Insider Buying and Selling

In related news, CEO Jack Abuhoff sold 150,000 shares of Innodata stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $94.39, for a total transaction of $14,158,500.00. Following the sale, the chief executive officer directly owned 1,340,456 shares in the company, valued at $126,525,641.84. The trade was a 10.06% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, COO Ashok Mishra sold 242,901 shares of the company’s stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $90.15, for a total value of $21,897,525.15. Following the completion of the sale, the chief operating officer directly owned 95,179 shares in the company, valued at approximately $8,580,386.85. The trade was a 71.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,178,826 shares of company stock valued at $112,016,456. 11.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. HRT Financial LP boosted its stake in Innodata by 746.1% during the second quarter. HRT Financial LP now owns 218,635 shares of the technology company’s stock worth $11,198,000 after acquiring an additional 192,794 shares in the last quarter. Next Century Growth Investors LLC increased its stake in shares of Innodata by 107.5% during the fourth quarter. Next Century Growth Investors LLC now owns 365,835 shares of the technology company’s stock valued at $18,639,000 after purchasing an additional 189,488 shares in the last quarter. First Trust Advisors LP purchased a new position in shares of Innodata during the second quarter valued at approximately $7,825,000. Dimensional Fund Advisors LP lifted its holdings in shares of Innodata by 32.2% during the first quarter. Dimensional Fund Advisors LP now owns 583,239 shares of the technology company’s stock valued at $22,517,000 after purchasing an additional 142,192 shares during the last quarter. Finally, RFG Advisory LLC bought a new stake in shares of Innodata in the 4th quarter worth approximately $5,750,000. 30.75% of the stock is currently owned by institutional investors.

Innodata Company Profile

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.