Innodata Inc. (NASDAQ:INOD) Director Louise C. Forlenza recently sold a significant portion of her holdings in the company, according to a recent filing with the Securities and Exchange Commission. On November 25, Forlenza sold 5,000 shares of Innodata common stock, generating a total of $225,940. The sale prices ranged from $45.10 to $45.54 per share.
Following these transactions, Forlenza retains direct ownership of 8,278 shares, with an additional 774 shares held indirectly through a 401(k) plan. The sales were part of her personal investment and financial planning, aimed at retirement planning and portfolio diversification.
In other recent news, Innodata reported a record Q3 revenue of $52 million, marking a 136% increase from the previous year. The company's adjusted EBITDA stood at $13.9 million, representing 27% of the revenue. A significant portion of the revenue, $30.6 million, came from a single Big Tech customer. Innodata also raised its full-year 2024 revenue guidance to $52-$55 million, indicating an 88%-92% growth.
The company has a strong cash reserve of $26.4 million and has received SEC approval for a $50 million securities offering, although there are no immediate fundraising plans. These recent developments show robust business momentum for Innodata, with strategic plans to expand relationships with seven significant clients and increase federal government engagements. However, contributions from federal engagements are not expected to be significant until after 2025. Despite this, the company anticipates strong business momentum to continue into the fourth quarter and 2025.
InvestingPro Insights
Innodata Inc. (NASDAQ:INOD) has been experiencing significant growth and market attention, as reflected in its recent stock performance and financial metrics. According to InvestingPro data, the company's revenue growth has been impressive, with a 71.66% increase in the last twelve months as of Q3 2024. This growth trajectory is further emphasized by the quarterly revenue growth of 135.57% in Q3 2024.
The market has taken notice of Innodata's performance, with the stock price showing remarkable returns. InvestingPro data reveals a staggering 571.45% price total return over the past year, and a 250.23% return over the last six months. This aligns with the "InvestingPro Tip" indicating a strong return over the last month and three months.
Despite the recent insider sale by Director Louise C. Forlenza, it's worth noting that Innodata's financial position appears solid. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, which could provide financial flexibility for future growth initiatives.
Investors should be aware that while the stock's performance has been impressive, it is currently trading at high valuation multiples. The P/E ratio stands at 66.12, and the Price to Book ratio is 27.59, suggesting the stock may be priced at a premium. This is consistent with the InvestingPro Tip indicating that the stock is trading at high earnings and revenue valuation multiples.
For those interested in a more comprehensive analysis, InvestingPro offers 22 additional tips for Innodata, providing a deeper insight into the company's financial health and market position.
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