Nauman Sabeeh Toor, a director at Innodata Inc. (NASDAQ:INOD), has sold 160,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at a weighted average price of $44.91, resulting in a total transaction value of approximately $7.19 million. Following this sale, Toor retains ownership of 519,401 shares, including 12,417 restricted stock units set to vest by June 2025 or at the company's 2025 annual meeting. The sale was part of a portfolio diversification strategy, and the shares were sold at prices ranging from $44.50 to $45.29.
In other recent news, Innodata has reported a record Q3 revenue of $52 million, a substantial increase of 136% from the previous year. This growth was primarily driven by a $30.6 million revenue contribution from a single Big Tech customer and expanded federal government engagements. The company's adjusted EBITDA was also robust, standing at $13.9 million, or 27% of the revenue.
Innodata also raised its full-year 2024 revenue guidance to a range of $52-$55 million, indicating a projected growth of 88%-92%. The company's cash reserves have also seen a significant increase, rising to $26.4 million, up $10 million from the previous quarter.
Despite receiving SEC approval for a $50 million securities offering, Innodata has no immediate fundraising plans. The company is looking forward to continuing its strong business momentum into Q4 and 2025, with a focus on generative AI and data engineering services for Big Tech firms. These recent developments reflect Innodata's strategic plans for the upcoming year and its readiness to support the evolving landscape of generative AI and data engineering for Big Tech and enterprises.
InvestingPro Insights
The recent insider sale by Nauman Sabeeh Toor at Innodata Inc. (NASDAQ:INOD) comes at a time when the company's stock has shown remarkable performance. According to InvestingPro data, INOD has delivered a staggering 417.73% return over the past year, with a particularly strong 137.66% gain in the last month alone. This impressive rally has pushed the stock to 89.41% of its 52-week high, suggesting significant investor optimism.
InvestingPro Tips highlight that Innodata holds more cash than debt on its balance sheet, indicating a strong financial position. This solid foundation is further supported by the company's ability to cover interest payments with its cash flows, which may provide reassurance to investors despite the insider sale.
The company's growth prospects appear promising, with analysts expecting both sales and net income growth in the current year. This aligns with the reported revenue growth of 71.66% over the last twelve months, and an even more impressive 135.57% growth in the most recent quarter.
However, investors should note that INOD is trading at a high P/E ratio of 63.49, which could indicate that the stock is priced for perfection. This valuation metric, combined with the InvestingPro Tip suggesting the stock is in overbought territory based on its RSI, may explain why a director chose to diversify their portfolio at this time.
For readers interested in a more comprehensive analysis, InvestingPro offers 23 additional tips for Innodata Inc., providing a deeper understanding of the company's financial health and market position.
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