Innodata (NASDAQ:INOD) Shares Gap Up on Earnings Beat

Shares of Innodata Inc. (NASDAQ:INOD) gapped up prior to trading 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 changing hands.

The technology company reported $0.41 EPS for the quarter, beating analysts’ consensus estimates of $0.21 by $0.20. Innodata had a net margin of 13.86% and a return on equity of 37.49%. The company 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 earned $0.20 earnings per share. The business’s quarterly revenue was up 57.8% on a year-over-year basis.

Analyst Upgrades and Downgrades

Several research firms have weighed in on INOD. Wedbush lifted their price objective on shares of Innodata from $100.00 to $120.00 and gave the stock an “outperform” rating in a research report on Thursday, June 4th. BWS Financial reaffirmed a “buy” rating on shares of Innodata in a research report on Monday, June 15th. Zacks Research upgraded Innodata from a “hold” rating to a “strong-buy” rating in a report on Tuesday, July 7th. Finally, Weiss Ratings downgraded Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, July 31st. Two 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 company’s stock. According to MarketBeat, Innodata presently has an average rating of “Buy” and an average price target of $130.00.

Insider Transactions at Innodata

In other Innodata news, COO Ashok Mishra sold 38,666 shares of the company’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $114.34, for a total value of $4,421,070.44. Following the transaction, the chief operating officer directly owned 83,179 shares of the company’s stock, valued at $9,510,686.86. This represents a 31.73% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Jack Abuhoff sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $110.20, for a total value of $22,040,000.00. Following the sale, the chief executive officer directly owned 1,340,456 shares of the company’s stock, valued at $147,718,251.20. This trade represents a 12.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,472,885 shares of company stock worth $143,998,492 in the last ninety days. Company insiders own 11.80% of the company’s stock.

Institutional Investors Weigh In On Innodata

Large investors have recently made changes to their positions in the company. Glenmede Trust Co. NA lifted its stake in shares of Innodata by 3.5% in the first quarter. Glenmede Trust Co. NA now owns 7,336 shares of the technology company’s stock worth $283,000 after buying an additional 248 shares during the last quarter. Prosperity Wealth Management Inc. grew its stake in Innodata by 4.0% in the 3rd quarter. Prosperity Wealth Management Inc. now owns 10,500 shares of the technology company’s stock valued at $809,000 after buying an additional 400 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Innodata by 5.7% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,703 shares of the technology company’s stock valued at $392,000 after buying an additional 418 shares during the last quarter. Texas Yale Capital Corp. raised its holdings in Innodata by 5.5% in the 4th quarter. Texas Yale Capital Corp. now owns 8,440 shares of the technology company’s stock worth $430,000 after acquiring an additional 440 shares during the period. Finally, IFP Advisors Inc raised its holdings in Innodata by 74.8% in the 4th quarter. IFP Advisors Inc now owns 1,166 shares of the technology company’s stock worth $59,000 after acquiring an additional 499 shares during the period. Institutional investors own 30.75% of the company’s stock.

Innodata Stock Performance

The stock has a market cap of $2.08 billion, a price-to-earnings ratio of 57.44 and a beta of 2.92. The company has a debt-to-equity ratio of 0.07, a quick ratio of 2.49 and a current ratio of 2.49. The stock’s 50-day simple moving average is $79.62 and its two-hundred 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.