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

Innodata Inc. (NASDAQ:INOD)’s stock price gapped up prior to trading on Wednesday . The stock had previously closed at $41.88, but opened at $44.96. Innodata shares last traded at $43.61, with a volume of 463,130 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on INOD shares. Wedbush assumed coverage on Innodata in a report on Thursday, December 19th. They set an “outperform” rating and a $48.00 price target on the stock. BWS Financial upped their price target on Innodata from $45.00 to $74.00 and gave the stock a “buy” rating in a research note on Friday, February 21st. StockNews.com upgraded shares of Innodata from a “sell” rating to a “hold” rating in a research report on Saturday, November 16th. Maxim Group upped their price objective on shares of Innodata from $54.00 to $75.00 and gave the stock a “buy” rating in a research report on Friday, February 21st. Finally, Chardan Capital reaffirmed a “buy” rating and issued a $45.00 target price on shares of Innodata in a report on Friday, December 13th. One equities research analyst has rated the stock with a hold rating and five have given a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $53.00.

Innodata Price Performance

The stock has a market cap of $1.35 billion, a PE ratio of 50.75 and a beta of 2.59. The company has a 50-day simple moving average of $44.30 and a 200-day simple moving average of $33.35. The company has a debt-to-equity ratio of 0.15, a current ratio of 1.84 and a quick ratio of 1.84.

Innodata (NASDAQ:INOD) last announced its quarterly earnings data on Thursday, February 20th. The technology company reported $0.31 EPS for the quarter, beating the consensus estimate of $0.11 by $0.20. Innodata had a net margin of 16.81% and a return on equity of 66.36%. The firm had revenue of $59.18 million during the quarter, compared to analysts’ expectations of $53.01 million. Sell-side analysts anticipate that Innodata Inc. will post 0.81 EPS for the current fiscal year.

Insider Transactions at Innodata

In other Innodata news, COO Ashok Mishra sold 48,650 shares of the business’s stock in a transaction on Wednesday, February 26th. The stock was sold at an average price of $65.07, for a total transaction of $3,165,655.50. Following the sale, the chief operating officer now directly owns 60,000 shares in the company, valued at approximately $3,904,200. The trade was a 44.78 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Nauman Sabeeh Toor sold 110,207 shares of the firm’s stock in a transaction on Friday, December 20th. The shares were sold at an average price of $44.00, for a total value of $4,849,108.00. Following the completion of the transaction, the director now owns 209,194 shares of the company’s stock, valued at approximately $9,204,536. This represents a 34.50 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 385,634 shares of company stock valued at $22,639,902 in the last quarter. 15.23% of the stock is currently owned by corporate insiders.

Institutional Trading of Innodata

Several institutional investors and hedge funds have recently modified their holdings of INOD. Allworth Financial LP purchased a new stake in Innodata in the 4th quarter valued at approximately $29,000. USA Financial Formulas purchased a new stake in shares of Innodata in the fourth quarter valued at $36,000. Meeder Asset Management Inc. purchased a new stake in Innodata during the 4th quarter worth about $36,000. AlphaQuest LLC raised its stake in Innodata by 79.4% in the 4th quarter. AlphaQuest LLC now owns 1,030 shares of the technology company’s stock valued at $41,000 after purchasing an additional 456 shares during the last quarter. Finally, SBI Securities Co. Ltd. purchased a new position in Innodata in the 4th quarter valued at about $150,000. Hedge funds and other institutional investors own 30.75% of the company’s stock.

About Innodata

Innodata Inc operates as a global data engineering company in the United States, the United Kingdom, the Netherlands, Canada, and internationally. The company operates through three segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment engages in the provision of artificial intelligence (AI) data preparation services; collecting or creating training data; annotating training data; and training AI algorithms for its customers, as well as AI model deployment and integration services.