Innodata (NASDAQ:INOD) Shares Gap Up After Better-Than-Expected Earnings

Innodata Inc. (NASDAQ:INOD)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $65.48, but opened at $75.92. Innodata shares last traded at $63.2760, with a volume of 1,418,808 shares.

The technology company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.20. The business had revenue of $92.14 million during the quarter, compared to analysts’ expectations of $86.31 million. Innodata had a return on equity of 37.49% and a net margin of 13.86%.The firm’s revenue was up 57.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.20 EPS.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the stock. Zacks Research raised shares of Innodata from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. BWS Financial reaffirmed a “buy” rating on shares of Innodata in a research report on Monday, June 15th. Weiss Ratings cut shares of Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, July 31st. Finally, Wedbush lifted their target price on Innodata from $100.00 to $120.00 and gave the stock an “outperform” rating in a research 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 issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus price target of $130.00.

Insider Buying and Selling at Innodata

In other news, COO Ashok Mishra sold 38,666 shares of Innodata stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $114.34, for a total transaction of $4,421,070.44. Following the sale, the chief operating officer directly owned 83,179 shares in the company, valued at approximately $9,510,686.86. The trade was a 31.73% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Marissa B. Espineli sold 19,667 shares of the company’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $105.88, for a total transaction 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 approximately $2,966,122.32. The trade was a 41.25% decrease in their position. 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 in the last 90 days. Insiders own 11.80% of the company’s stock.

Hedge Funds Weigh In On Innodata

Hedge funds have recently modified their holdings of the stock. RFG Advisory LLC acquired a new stake in shares of Innodata in the 4th quarter valued at $5,750,000. Janus Henderson Group PLC increased its position in shares of Innodata by 13.8% during the 1st quarter. Janus Henderson Group PLC now owns 526,012 shares of the technology company’s stock worth $20,315,000 after purchasing an additional 63,779 shares in the last quarter. Bleakley Financial Group LLC acquired a new stake in shares of Innodata during the 4th quarter worth about $900,000. Next Century Growth Investors LLC lifted its holdings in Innodata by 107.5% during the 4th 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 during the last quarter. Finally, UBS Group AG lifted its holdings in Innodata by 37.1% during the 4th quarter. UBS Group AG now owns 350,928 shares of the technology company’s stock valued at $17,880,000 after purchasing an additional 95,002 shares during the last quarter. 30.75% of the stock is owned by institutional investors and hedge funds.

Innodata Stock Performance

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 stock has a market capitalization of $2.08 billion, a price-to-earnings ratio of 57.44 and a beta of 2.92. The stock’s 50-day simple moving average is $79.62 and its 200 day simple moving average is $62.74.

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.