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

Innodata Inc. (NASDAQ:INOD) shares gapped down prior to trading on Tuesday. The stock had previously closed at $59.91, but opened at $48.70. Innodata shares last traded at $47.1790, with a volume of 1,805,826 shares trading hands.

Wall Street Analyst Weigh In

INOD has been the topic of a number of research reports. Weiss Ratings downgraded Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, July 31st. Yorkville Ives started coverage on shares of Innodata in a report on Monday, October 5th. They issued an “outperform” rating and a $90.00 target price on the stock. Zacks Research lowered Innodata from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 11th. Finally, BWS Financial restated a “top pick” rating and set a $140.00 target price on shares of Innodata in a research report on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $116.67.

Innodata Stock Performance

The stock has a market cap of $1.54 billion, a price-to-earnings ratio of 33.74 and a beta of 2.98. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.73 and a quick ratio of 1.73. The stock’s 50-day moving average is $60.25 and its 200-day moving average is $61.96.

Innodata (NASDAQ:INOD) last released its earnings results on Thursday, August 6th. The technology company reported $0.41 EPS for the quarter, beating the consensus estimate of $0.21 by $0.20. Innodata had a return on equity of 37.79% 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 period in the prior year, the firm posted $0.20 earnings per share. The business’s quarterly revenue was up 57.8% compared to the same quarter last year. Analysts anticipate that Innodata Inc. will post 1.35 EPS for the current fiscal year.

Insider Buying and Selling at Innodata

In related news, Director Louise Forlenza sold 10,000 shares of the company’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 sale, the director directly owned 5,424 shares of the company’s stock, valued at approximately $290,400.96. This represents a 64.83% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 11.80% of the company’s stock.

Institutional Investors Weigh In On Innodata

A number of institutional investors have recently modified their holdings of INOD. Oppenheimer & Co. Inc. raised its holdings in shares of Innodata by 8.4% during the third quarter. Oppenheimer & Co. Inc. now owns 11,347 shares of the technology company’s stock worth $746,000 after purchasing an additional 875 shares during the period. Center for Financial Planning Inc. acquired a new position in Innodata in the third quarter worth approximately $110,000. Wedbush Securities Inc. acquired a new position in shares of Innodata in the 3rd quarter valued at $204,000. Sterling Capital Management LLC raised its stake in Innodata by 846.4% during the 3rd quarter. Sterling Capital Management LLC now owns 1,060 shares of the technology company’s stock valued at $70,000 after purchasing an additional 948 shares during the period. Finally, Oakmont Investment Advisors Inc. acquired a new stake in Innodata during the 3rd quarter worth about $329,000. Institutional investors and hedge funds own 30.75% of the company’s stock.

Innodata Company Profile

Innodata Inc (NASDAQ: INOD) is a global data engineering and technology company that helps organizations prepare, manage and use information for digital transformation and artificial intelligence initiatives. Its services are designed to support the development, training, evaluation and deployment of AI and machine-learning systems.

The company provides data annotation and labeling, data collection and preparation, content transformation, document processing, natural-language services, and generative AI support.