Innodata Experiences Significant Options Activity

Innodata Inc. (NASDAQ:INOD - Get Free Report) attracted attention from traders on Friday due to an unusual surge in options trading. Investors purchased 13,935 call options, representing a staggering increase of 444% compared to the average daily volume of 2,560 call options.

Stock Performance Overview

On the same day, Innodata's stock price rose by $13.83, closing at $68.39. The total trading volume reached 3,502,274 shares, exceeding the average trading volume of 1,655,662 shares. The company’s 50-day moving average is $41.05, while the 200-day moving average stands at $29.81. With a market capitalization of $1.98 billion, Innodata has a price-to-earnings ratio of 114.19 and a beta value of 2.57. Their financial ratios include a current ratio of 1.84, a quick ratio of 1.84, and a low debt-to-equity ratio of 0.15. Over the past year, the stock has fluctuated between a low of $5.46 and a high of $70.15.

Recent Earnings Announcement

Innodata recently reported its quarterly earnings on February 20. The technology company announced earnings per share (EPS) of $0.31, surpassing analysts’ expectations which estimated the EPS would be $0.11 by $0.20. The company achieved a net margin of 14.57% along with a return on equity of 44.38%. For the quarter, Innodata generated revenues of $59.18 million, exceeding the consensus estimate of $53.01 million. Analysts project the company will have an EPS of 0.62 for the current year.

Insider Transactions

In recent insider trading news, COO Ashok Mishra sold 58,500 shares of company stock on December 4, at an average price of $44.97, totaling approximately $2.63 million. Additionally, Director Nauman Sabeeh Toor sold 110,207 shares on December 20, at an average price of $44.00, amounting to around $4.85 million. Following this transaction, Toor holds 209,194 shares valued at approximately $9.2 million, marking a 34.50% decrease in his holdings. Over the past three months, corporate insiders have sold a combined total of 559,806 shares worth $25.35 million, indicating that insiders currently own about 15.23% of the company's stock.

Institutional Investors' Activity

Recent movements by institutional investors reflect fluctuating interests in Innodata. Allworth Financial LP purchased a new stake worth roughly $29,000 in the fourth quarter, while USA Financial Formulas added $36,000 to their investment during the same time. Meeder Asset Management also bought shares valued at approximately $36,000. Additionally, AlphaQuest LLC increased its stake by 79.4%, now holding 1,030 shares valued at $41,000 after acquiring additional shares. SBI Securities Co. Ltd. added a position worth around $150,000. Overall, hedge funds and institutional investors control 30.75% of the shares.

Analyst Opinions and Ratings

Innodata has garnered attention from various analysts in recent reports. Wedbush initiated coverage with an "outperform" rating and set a price target of $48.00. StockNews.com upgraded Innodata’s rating from "sell" to "hold". BWS Financial revised their price target from $30.00 to $45.00, giving the stock a "buy" rating. Additionally, Chardan Capital reaffirmed a "buy" rating with a similar price target of $45.00. Presently, one analyst rates the stock as a hold, while five have given it a buy rating. MarketBeat statistics show an average rating of "Moderate Buy" and an average target price of $38.20 for the stock.

Company Overview

Innodata Inc. operates as a global data engineering company. The firm has a presence in the United States, the United Kingdom, the Netherlands, Canada, and beyond. It functions through three main segments: Digital Data Solutions (DDS), Synodex, and Agility. The DDS segment offers services related to artificial intelligence (AI) data preparation, which includes collecting and annotating training data as well as deploying and integrating AI models for customers.

Innodata, options, trading