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

Innodata Inc. (NASDAQ:INOD) gapped down prior to trading on Monday . The stock had previously closed at $37.39, but opened at $35.50. Innodata shares last traded at $36.61, with a volume of 259,282 shares.

Analyst Upgrades and Downgrades

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

Innodata Stock Performance

The company has a debt-to-equity ratio of 0.15, a current ratio of 1.84 and a quick ratio of 1.84. The firm has a market cap of $1.14 billion, a price-to-earnings ratio of 42.99 and a beta of 2.59. The firm has a fifty day simple moving average of $45.42 and a two-hundred day simple moving average of $35.95.

Innodata (NASDAQ:INOD) last issued its earnings results on Thursday, February 20th. The technology company reported $0.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.11 by $0.20. The company had revenue of $59.18 million during the quarter, compared to analyst estimates of $53.01 million. Innodata had a return on equity of 66.36% and a net margin of 16.81%. On average, analysts expect that Innodata Inc. will post 0.81 EPS for the current year.

Insider Activity

In other news, Director Nauman Sabeeh Toor sold 196,777 shares of the company’s stock in a transaction dated Wednesday, February 26th. The stock was sold at an average price of $64.40, for a total value of $12,672,438.80. Following the sale, the director now owns 12,417 shares in the company, valued at $799,654.80. This represents a 94.06 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Ashok Mishra sold 48,650 shares of Innodata stock in a transaction that occurred on Wednesday, February 26th. The shares were sold at an average price of $65.07, for a total transaction of $3,165,655.50. Following the transaction, the chief operating officer now directly owns 60,000 shares of the company’s stock, valued at approximately $3,904,200. This trade represents a 44.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 275,427 shares of company stock valued at $17,790,794 in the last ninety days. Insiders own 15.23% of the company’s stock.

Hedge Funds Weigh In On Innodata

Large investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in shares of Innodata by 7.7% during the 4th quarter. Vanguard Group Inc. now owns 1,639,724 shares of the technology company’s stock worth $64,802,000 after purchasing an additional 117,000 shares during the last quarter. D. E. Shaw & Co. Inc. lifted its stake in Innodata by 1,718.4% in the 4th quarter. D. E. Shaw & Co. Inc. now owns 944,611 shares of the technology company’s stock worth $37,331,000 after purchasing an additional 892,663 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Innodata by 2.3% during the 3rd quarter. Geode Capital Management LLC now owns 613,748 shares of the technology company’s stock worth $10,294,000 after purchasing an additional 13,609 shares during the last quarter. State Street Corp boosted its stake in Innodata by 1.8% during the third quarter. State Street Corp now owns 537,301 shares of the technology company’s stock worth $9,011,000 after buying an additional 9,408 shares during the last quarter. Finally, Driehaus Capital Management LLC acquired a new stake in shares of Innodata in the 4th quarter worth $16,713,000. Institutional investors and hedge funds 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.