Innodata (NASDAQ:INOD) Shares Down 4.6% – Should You Sell?

Innodata Inc. (NASDAQ:INOD)’s stock price dropped 4.6% on Friday . The company traded as low as $57.12 and last traded at $57.91. Approximately 238,007 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 1,266,103 shares. The stock had previously closed at $60.71.

Analyst Ratings Changes

A number of analysts recently issued reports on the stock. Zacks Research downgraded shares of Innodata from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 9th. Weiss Ratings downgraded shares of Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, January 12th. BWS Financial raised shares of Innodata from a “buy” rating to a “top pick” rating and set a $110.00 price target on the stock in a report on Monday, January 5th. Finally, Wedbush upped their price objective on Innodata from $75.00 to $90.00 and gave the company an “outperform” rating in a research note on Wednesday, October 15th. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $91.67.

Innodata Price Performance

The firm has a market cap of $1.90 billion, a P/E ratio of 61.36 and a beta of 2.43. The business’s fifty day simple moving average is $56.47 and its 200-day simple moving average is $58.32. The company has a current ratio of 2.69, a quick ratio of 2.69 and a debt-to-equity ratio of 0.08.

Innodata (NASDAQ:INOD) last announced its quarterly earnings results on Thursday, November 6th. The technology company reported $0.24 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.10. Innodata had a return on equity of 41.67% and a net margin of 14.11%.The company had revenue of $62.55 million during the quarter, compared to analysts’ expectations of $59.78 million. Innodata’s revenue for the quarter was up 19.8% on a year-over-year basis. As a group, analysts forecast that Innodata Inc. will post 0.81 EPS for the current fiscal year.

Insider Activity

In other news, Director Louise C. Forlenza sold 8,278 shares of the stock in a transaction dated Wednesday, November 12th. The shares were sold at an average price of $65.00, for a total value of $538,070.00. Following the sale, the director directly owned 3,943 shares of the company’s stock, valued at approximately $256,295. This represents a 67.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Ashok Mishra sold 200,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 12th. The shares were sold at an average price of $61.39, for a total transaction of $12,278,000.00. Following the completion of the transaction, the chief operating officer owned 60,000 shares of the company’s stock, valued at $3,683,400. This trade represents a 76.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 236,372 shares of company stock worth $14,572,507. Company insiders own 12.20% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Hussman Strategic Advisors Inc. bought a new position in shares of Innodata during the 2nd quarter valued at $1,076,000. Wealth Enhancement Advisory Services LLC purchased a new stake in Innodata during the second quarter valued at about $332,000. Moody Aldrich Partners LLC bought a new position in shares of Innodata during the third quarter valued at about $3,718,000. Dakota Wealth Management bought a new position in shares of Innodata during the second quarter valued at about $321,000. Finally, Freedom Investment Management Inc. purchased a new position in shares of Innodata in the second quarter worth about $242,000. 30.75% of the stock is currently owned by hedge funds and other 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.