Louise C. Forlenza, a director at Innodata Inc. (NASDAQ:INOD), has sold shares of the company's common stock valued at approximately $1.9 million. The transactions were executed on November 13, 2024, with prices ranging from $44.01 to $45.12 per share.
The sales involved three separate transactions. In the first, Forlenza sold 2,984 shares at $44.01 each. The second transaction saw the sale of 36,914 shares at a weighted average price of $44.35, with the price varying between $43.91 and $44.85. The third sale included 3,086 shares at a weighted average price of $45.12, with prices ranging from $45.00 to $45.31.
Following these transactions, Forlenza holds 12,278 shares directly, which include 8,278 restricted stock units that are set to vest by June 2025 or at Innodata's 2025 annual meeting, and 1,774 shares indirectly through a 401(k) plan.
In other recent news, Innodata reported a record Q3 revenue of $52 million, a notable 136% increase from the previous year. The company's adjusted EBITDA stood at $13.9 million, equivalent to 27% of the revenue, with a significant portion of revenue, $30.6 million, contributed by a single Big Tech customer. These recent developments indicate a robust business momentum for Innodata, supported by a strong cash reserve of $26.4 million and an upward adjustment of the full-year revenue guidance.
Innodata also received SEC approval for a $50 million securities offering, although there are no immediate fundraising plans. The company made strategic hires, including a high-level Ph.D. in AI, to bolster innovation. Looking ahead, Innodata anticipates this strong business momentum to continue into the fourth quarter and 2025, with plans to expand relationships with seven significant clients and increase federal government engagements. However, contributions from these federal engagements are not expected to be significant until after 2025.
InvestingPro Insights
Following the significant stock sale by director Louise C. Forlenza, investors may be interested in additional context regarding Innodata Inc.'s (NASDAQ:INOD) financial performance and market position. According to InvestingPro data, Innodata has shown impressive growth, with revenue increasing by 71.66% in the last twelve months as of Q3 2024, reaching $137.39 million. This strong performance is reflected in the stock's remarkable year-to-date price return of 381.08% as of the latest data.
Despite the recent insider sale, InvestingPro Tips suggest that Innodata's financial health remains robust. The company holds more cash than debt on its balance sheet, indicating a strong liquidity position. Additionally, analysts anticipate continued sales growth in the current year, which could support further stock appreciation.
However, investors should note that the stock is trading at a high P/E ratio of 55.85, suggesting a premium valuation. This is consistent with the InvestingPro Tip highlighting that Innodata is trading at high earnings and revenue multiples. The stock's recent performance has also pushed it into overbought territory according to the RSI indicator, which may explain the timing of the insider sale.
For those considering an investment in Innodata, it's worth noting that InvestingPro offers 23 additional tips that could provide further insights into the company's prospects and valuation. These tips, along with real-time metrics, can help investors make more informed decisions in light of recent insider activity and market dynamics.
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