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

Zacks Research downgraded shares of Innodata (NASDAQ:INOD) from a strong-buy rating to a hold rating in a report published on Tuesday,Zacks.com reports.

INOD has been the subject of a number of other reports. Wedbush increased their price target on shares of Innodata from $100.00 to $120.00 and gave the stock an “outperform” rating in a research note on Thursday, June 4th. Weiss Ratings cut Innodata from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, July 31st. Finally, BWS Financial reaffirmed a “top pick” rating and set a $140.00 price objective on shares of Innodata in a research report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, Innodata presently has an average rating of “Moderate Buy” and a consensus price target of $130.00.

Innodata Stock Down 2.0%

Shares of Innodata stock opened at $61.47 on Tuesday. The company has a current ratio of 2.49, a quick ratio of 2.49 and a debt-to-equity ratio of 0.07. The company’s fifty day simple moving average is $75.74 and its two-hundred day simple moving average is $62.78. 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 12-month low of $34.23 and a 12-month high of $125.14.

Innodata (NASDAQ:INOD) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.21 by $0.20. Innodata had a net margin of 14.66% and a return on equity of 41.94%. The business had revenue of $92.14 million during the quarter, compared to analyst estimates of $86.31 million. During the same period in the prior year, the business earned $0.20 EPS. The company’s revenue for the quarter was up 57.8% on a year-over-year basis. Research analysts anticipate that Innodata will post 1.18 EPS for the current year.

Insider Buying and Selling at Innodata

In related news, CEO Jack Abuhoff sold 200,000 shares of Innodata 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 transaction, the chief executive officer directly 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 position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Louise C. Forlenza sold 18,000 shares of the business’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $94.47, for a total transaction of $1,700,460.00. Following the sale, the director directly owned 3,943 shares in the company, valued at $372,495.21. The trade was a 82.03% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 946,834 shares of company stock worth $95,725,936. Corporate insiders own 11.80% of the company’s stock.

Hedge Funds Weigh In On Innodata

Several large investors have recently made changes to their positions in the business. Compass Financial Management LLC bought a new stake in shares of Innodata in the 2nd quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. bought a new position in Innodata during the 4th quarter valued at approximately $26,000. Farther Finance Advisors LLC raised its stake in Innodata by 506.0% during the fourth quarter. Farther Finance Advisors LLC now owns 806 shares of the technology company’s stock valued at $41,000 after buying an additional 673 shares during the last quarter. Fifth Third Bancorp purchased a new position in Innodata during the first quarter valued at $45,000. Finally, Leonteq Securities AG bought a new stake in Innodata in the fourth quarter worth $51,000. 30.75% of the stock is currently owned by hedge funds and other institutional investors.

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.

Innodata Company Profile

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.