Zacks Research Downgrades Innodata (NASDAQ:INOD) to Hold

Innodata (NASDAQ:INOD) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Tuesday,Zacks.com reports.

Other research analysts have also recently issued reports about the company. Wedbush boosted their price target on Innodata from $100.00 to $120.00 and gave the stock an “outperform” rating in a report on Thursday, June 4th. Weiss Ratings lowered shares of Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a report on Friday, July 31st. Finally, BWS Financial reiterated a “top pick” rating and set a $140.00 price objective on shares of Innodata in a research report on Friday, August 7th. 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. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $130.00.

Innodata Price Performance

NASDAQ:INOD opened at $61.47 on Tuesday. The company has a quick ratio of 2.49, a current ratio of 2.49 and a debt-to-equity ratio of 0.07. The business’s 50-day simple moving average is $75.74 and its two-hundred day simple moving average is $62.78. The stock has a market cap of $2.11 billion, a PE ratio of 46.57 and a beta of 2.92. Innodata has a 52 week low of $34.23 and a 52 week high of $125.14.

Innodata (NASDAQ:INOD) last released its quarterly earnings data on Thursday, August 6th. The technology company reported $0.41 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.20. Innodata had a return on equity of 41.94% and a net margin of 14.66%.The firm had revenue of $92.14 million during the quarter, compared to analyst estimates of $86.31 million. During the same quarter in the prior year, the company posted $0.20 earnings per share. The business’s quarterly revenue was up 57.8% compared to the same quarter last year. As a group, analysts forecast that Innodata will post 1.18 EPS for the current fiscal year.

Insider Buying and Selling at Innodata

In other news, Director Louise C. Forlenza sold 18,000 shares of the company’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $94.47, for a total transaction of $1,700,460.00. Following the sale, the director directly owned 3,943 shares in the company, valued at approximately $372,495.21. This represents a 82.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Jack Abuhoff sold 200,000 shares of the stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $110.20, for a total transaction of $22,040,000.00. Following the completion of the transaction, the chief executive officer directly owned 1,340,456 shares of the company’s stock, valued at approximately $147,718,251.20. The trade was a 12.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 946,834 shares of company stock valued at $95,725,936. Corporate insiders own 11.80% of the company’s stock.

Institutional Investors Weigh In On Innodata

Several large investors have recently added to or reduced their stakes in the stock. Geode Capital Management LLC raised its position in Innodata by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 752,795 shares of the technology company’s stock valued at $38,362,000 after purchasing an additional 2,407 shares during the period. State Street Corp boosted its holdings in shares of Innodata by 2.8% in the 4th quarter. State Street Corp now owns 711,180 shares of the technology company’s stock worth $36,235,000 after purchasing an additional 19,484 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Innodata by 32.2% during the 1st 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. Wellington Management Group LLP increased its position in shares of Innodata by 8.1% during the 4th quarter. Wellington Management Group LLP now owns 571,987 shares of the technology company’s stock valued at $29,143,000 after purchasing an additional 42,847 shares during the last quarter. Finally, Janus Henderson Group PLC raised its holdings in Innodata by 13.8% during the 1st quarter. Janus Henderson Group PLC now owns 526,012 shares of the technology company’s stock valued at $20,315,000 after buying an additional 63,779 shares during the period. 30.75% of the stock is owned by institutional investors.

Innodata News Roundup

Here are the key news stories impacting Innodata this week:

• Positive Sentiment: Innodata reaffirmed its outlook for at least 40% revenue growth in 2026. Record second-quarter results, a broader customer base and a sizable untapped pipeline support the potential for further upside. Innodata Reaffirms 40% Growth Outlook: Is More Upside Ahead?
• Positive Sentiment: Zacks identified INOD as one of two AI-led engineering and research-and-development services stocks with strong growth prospects and significant potential price upside. Buy 2 AI-Led Engineering R&D Services Stocks to Tap Solid Price Upside
• Positive Sentiment: Maxim Group raised its 2026 EPS forecast for Innodata to $1.32 from $1.02 and lifted its 2027 forecast to $1.41 from $1.32. The firm also increased estimates for several quarters, including Q3 2026 EPS to $0.24 from $0.19, signaling stronger expected profitability.
• Positive Sentiment: A recent quarterly report showed revenue growth of 57.8% year over year and EPS of $0.41, well above the $0.21 consensus estimate, reinforcing the company’s growth momentum.
• Neutral Sentiment: A report showed zero short interest as of August 11, unchanged from the prior reported figure. Because the data indicates no short positions, it provides little direct catalyst for the stock.
• Negative Sentiment: INOD remains a high-volatility growth stock, with a P/E ratio near 47 and a beta of 2.92. Those metrics leave the shares sensitive to profit-taking or broader weakness in technology and AI-related stocks, even as operating expectations improve.

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.