Innodata (NASDAQ:INOD) Shares Gap Up – Still a Buy?

Innodata Inc. (NASDAQ:INOD)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $55.84, but opened at $60.33. Innodata shares last traded at $61.6270, with a volume of 2,093,595 shares.

Trending Headlines about Innodata

Here are the key news stories impacting Innodata this week:

• Positive Sentiment: BWS Financial reaffirmed its “top pick” rating and set a $110 price target (~98% upside vs. current levels), signaling strong analyst conviction that could support medium‑term upside. BWS Financial Reaffirmation
• Positive Sentiment: Wedbush reaffirmed an “outperform” rating with a $90 price target (~62% upside), another analyst vote of confidence that underpins bullish thesis on revenue and margins. Wedbush Rating
• Positive Sentiment: Innodata announced a commercial partnership with Palantir to provide data engineering and training data (rodeo video annotation) — a clear revenue‑relevant win that drove the stock higher earlier this week. This strengthens Innodata’s position in high‑value AI data services. Zacks: Palantir Partnership
• Positive Sentiment: The company won a task‑eligible position on the U.S. Missile Defense Agency’s SHIELD IDIQ, expanding its addressable government opportunity and providing future contract bidding runway. InsiderMonkey: SHIELD Contract
• Neutral Sentiment: Recent heavy volume and a sharp intraday surge (shares jumped ~14% in the prior session) suggest momentum trading; analysts note that earnings‑estimate revisions may not sustain the rally. That makes short‑term direction uncertain. Zacks: Stock Jump Analysis
• Neutral Sentiment: Benzinga coverage of options market activity highlights elevated derivatives interest — this can amplify moves in either direction and increase intraday volatility. Benzinga: Options Market Dynamics
• Negative Sentiment: Broader weakness/valuation pressure in Palantir ahead of its earnings and a rotation away from richly valued AI names are creating a risk‑off backdrop for vendors tied to those platforms; investors appear to be taking profits after the recent run. MarketBeat: Palantir Reality Check

Analysts Set New Price Targets

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

Innodata Stock Down 13.2%

The business has a 50 day moving average of $56.93 and a two-hundred day moving average of $58.53. The stock has a market capitalization of $1.77 billion, a PE ratio of 57.16 and a beta of 2.43. The company has a debt-to-equity ratio of 0.08, a quick ratio of 2.69 and a current ratio of 2.69.

Innodata (NASDAQ:INOD) last posted its quarterly earnings data on Thursday, November 6th. The technology company reported $0.24 EPS for the quarter, topping the consensus estimate of $0.14 by $0.10. The firm had revenue of $62.55 million during the quarter, compared to analyst estimates of $59.78 million. Innodata had a net margin of 14.11% and a return on equity of 41.67%. The business’s revenue for the quarter was up 19.8% on a year-over-year basis. Analysts predict that Innodata Inc. will post 0.81 EPS for the current year.

Insider Buying and Selling at Innodata

In other news, Director Louise C. Forlenza sold 8,278 shares of the company’s stock in a transaction dated Wednesday, November 12th. The stock was sold at an average price of $65.00, for a total value of $538,070.00. Following the sale, the director owned 3,943 shares in the company, valued at $256,295. This represents a 67.74% 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 200,000 shares of the business’s stock in a transaction 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 approximately $3,683,400. This represents a 76.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 236,372 shares of company stock worth $14,572,507. 12.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. lifted its stake in shares of Innodata by 0.8% in the 3rd quarter. Vanguard Group Inc. now owns 1,840,491 shares of the technology company’s stock valued at $141,847,000 after purchasing an additional 15,036 shares during the last quarter. Geode Capital Management LLC raised its holdings in Innodata by 11.0% in the 2nd quarter. Geode Capital Management LLC now owns 700,217 shares of the technology company’s stock valued at $35,869,000 after buying an additional 69,475 shares during the period. Jump Financial LLC lifted its position in Innodata by 1,058.5% in the second quarter. Jump Financial LLC now owns 391,200 shares of the technology company’s stock valued at $20,037,000 after buying an additional 357,433 shares during the last quarter. Plustick Management LLC lifted its position in Innodata by 1.4% in the third quarter. Plustick Management LLC now owns 360,000 shares of the technology company’s stock valued at $27,745,000 after buying an additional 5,000 shares during the last quarter. Finally, UBS Group AG boosted its stake in Innodata by 37.1% during the fourth quarter. UBS Group AG now owns 350,928 shares of the technology company’s stock worth $17,880,000 after buying an additional 95,002 shares during the period. 30.75% of the stock is currently owned by institutional investors and hedge funds.

About Innodata

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.