Innodata (NASDAQ:INOD) Shares Gap Up – Should You Buy?

Innodata Inc. (NASDAQ:INOD)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $53.84, but opened at $58.03. Innodata shares last traded at $58.20, with a volume of 1,349,060 shares changing hands.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on the stock. Chardan Capital reissued a “buy” rating and issued a $45.00 price objective on shares of Innodata in a research report on Friday, December 13th. Wedbush assumed coverage on shares of Innodata in a research report on Thursday, December 19th. They issued an “outperform” rating and a $48.00 price objective on the stock. BWS Financial increased their price objective on shares of Innodata from $30.00 to $45.00 and gave the company a “buy” rating in a research report on Friday, November 8th. Finally, StockNews.com raised shares of Innodata from a “sell” rating to a “hold” rating in a research report on Saturday, November 16th. One research analyst has rated the stock with a hold rating and five have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $38.20.

Innodata Stock Performance

The firm’s fifty day moving average price is $40.66 and its 200-day moving average price is $29.64. The company has a current ratio of 1.84, a quick ratio of 1.84 and a debt-to-equity ratio of 0.15. The firm has a market cap of $1.58 billion, a price-to-earnings ratio of 92.48 and a beta of 2.57.

Innodata (NASDAQ:INOD) last issued its quarterly earnings results on Thursday, February 20th. The technology company reported $0.31 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.20. Innodata had a net margin of 14.57% and a return on equity of 44.38%. Analysts expect that Innodata Inc. will post 0.62 earnings per share for the current year.

Insider Buying and Selling

In other news, COO Ashok Mishra sold 58,500 shares of Innodata stock in a transaction dated Wednesday, December 4th. The shares were sold at an average price of $44.97, for a total value of $2,630,745.00. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Louise C. Forlenza sold 4,000 shares of Innodata stock in a transaction dated Monday, November 25th. The shares were sold at an average price of $45.10, for a total transaction of $180,400.00. Following the completion of the sale, the director now directly owns 8,278 shares in the company, valued at approximately $373,337.80. The trade was a 32.58 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 559,806 shares of company stock worth $25,353,904 in the last 90 days. Company insiders own 15.23% of the company’s stock.

Institutional Trading of Innodata

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Palisades Investment Partners LLC boosted its holdings in shares of Innodata by 6.1% in the fourth quarter. Palisades Investment Partners LLC now owns 368,651 shares of the technology company’s stock valued at $14,569,000 after acquiring an additional 21,093 shares in the last quarter. Two Sigma Investments LP acquired a new stake in shares of Innodata in the fourth quarter valued at about $5,282,000. State of Wyoming acquired a new stake in shares of Innodata in the fourth quarter valued at about $250,000. ProShare Advisors LLC acquired a new stake in shares of Innodata in the fourth quarter valued at about $301,000. Finally, Nuveen Asset Management LLC lifted its stake in shares of Innodata by 20.6% in the fourth quarter. Nuveen Asset Management LLC now owns 312,639 shares of the technology company’s stock valued at $12,355,000 after purchasing an additional 53,376 shares during the period. 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.