Innodata (NASDAQ:INOD) Lowered to “Hold” Rating by Zacks Research

Innodata (NASDAQ:INOD) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday,Zacks.com reports.

Other equities research analysts have also issued reports about the stock. Wedbush lifted their price target on shares of Innodata from $100.00 to $120.00 and gave the company an “outperform” rating in a research note on Thursday, June 4th. Weiss Ratings downgraded shares of Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, July 31st. Finally, BWS Financial restated a “top pick” rating and issued a $140.00 price objective on shares of Innodata in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Innodata has an average rating of “Moderate Buy” and an average target price of $130.00.

Innodata Trading Down 2.0%

NASDAQ:INOD opened at $61.47 on Tuesday. The company has a market cap of $2.11 billion, a P/E ratio of 46.57 and a beta of 2.92. Innodata has a twelve month low of $34.23 and a twelve month high of $125.14. The business has a 50 day moving average price of $75.74 and a two-hundred day moving average price of $62.78. The company has a quick ratio of 2.49, a current ratio of 2.49 and a debt-to-equity ratio of 0.07.

Innodata (NASDAQ:INOD) last posted its quarterly earnings data on Thursday, August 6th. The technology company reported $0.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.20. The company had revenue of $92.14 million for the quarter, compared to the consensus estimate of $86.31 million. Innodata had a net margin of 14.66% and a return on equity of 41.94%. The firm’s revenue was up 57.8% compared to the same quarter last year. During the same period last year, the company earned $0.20 earnings per share. As a group, analysts expect that Innodata will post 1.18 EPS for the current fiscal year.

Insider Activity

In related news, CFO Marissa B. Espineli sold 19,667 shares of the firm’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $105.88, for a total value of $2,082,341.96. Following the completion of the sale, the chief financial officer directly owned 28,014 shares in the company, valued at approximately $2,966,122.32. This trade represents a 41.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Jack Abuhoff sold 200,000 shares of the firm’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $110.20, for a total transaction of $22,040,000.00. Following the completion of the sale, the chief executive officer owned 1,340,456 shares of the company’s stock, valued at $147,718,251.20. This trade represents a 12.98% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 946,834 shares of company stock valued at $95,725,936 over the last quarter. 11.80% of the stock is currently owned by company insiders.

Institutional Trading of Innodata

A number of hedge funds have recently made changes to their positions in the business. Compass Financial Management LLC acquired a new position in shares of Innodata during the 2nd quarter worth approximately $26,000. Bank of New York Mellon Corp acquired a new stake in Innodata during the 2nd quarter valued at $7,262,000. Handelsbanken Fonder AB lifted its holdings in Innodata by 32.1% during the 2nd quarter. Handelsbanken Fonder AB now owns 10,300 shares of the technology company’s stock valued at $778,000 after purchasing an additional 2,500 shares during the last quarter. Hennion & Walsh Asset Management Inc. boosted its position in Innodata by 72.9% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 24,328 shares of the technology company’s stock worth $1,839,000 after purchasing an additional 10,257 shares during the period. Finally, City Center Advisors LLC acquired a new position in shares of Innodata in the second quarter valued at $495,000. 30.75% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Innodata

Here are the key news stories impacting Innodata this week:

• Positive Sentiment: Innodata reaffirmed its outlook for at least 40% revenue growth in 2026. Record second-quarter results, a broader customer base and a sizable untapped pipeline support the potential for further upside. Innodata Reaffirms 40% Growth Outlook: Is More Upside Ahead?
• Positive Sentiment: Zacks identified INOD as one of two AI-led engineering and research-and-development services stocks with strong growth prospects and significant potential price upside. Buy 2 AI-Led Engineering R&D Services Stocks to Tap Solid Price Upside
• Positive Sentiment: Maxim Group raised its 2026 EPS forecast for Innodata to $1.32 from $1.02 and lifted its 2027 forecast to $1.41 from $1.32. The firm also increased estimates for several quarters, including Q3 2026 EPS to $0.24 from $0.19, signaling stronger expected profitability.
• Positive Sentiment: A recent quarterly report showed revenue growth of 57.8% year over year and EPS of $0.41, well above the $0.21 consensus estimate, reinforcing the company’s growth momentum.
• Neutral Sentiment: A report showed zero short interest as of August 11, unchanged from the prior reported figure. Because the data indicates no short positions, it provides little direct catalyst for the stock.
• Negative Sentiment: INOD remains a high-volatility growth stock, with a P/E ratio near 47 and a beta of 2.92. Those metrics leave the shares sensitive to profit-taking or broader weakness in technology and AI-related stocks, even as operating expectations improve.

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.