Stewart R. Massey, a director at Innodata Inc. (NASDAQ:INOD), recently executed several stock transactions, according to a filing with the Securities and Exchange Commission. On November 13, Massey sold a total of 50,000 shares of Innodata's common stock, generating approximately $2,027,636. The shares were sold at prices ranging from $40.09 to $42.75 per share.
In addition to the sales, Massey also acquired 50,000 shares through a stock option exercise at a price of $1.24 per share, totaling $62,000. Following these transactions, Massey holds 25,262 shares directly and an additional 23,000 shares indirectly through a SEP IRA.
These transactions are part of Massey's ongoing management of his holdings in the company, where he serves as a director.
In other recent news, Innodata reported a record Q3 revenue of $52 million, marking a significant 136% year-over-year increase. This robust growth was largely driven by a $30.6 million revenue contribution from a single Big Tech client and expanded federal government engagements. The company's adjusted EBITDA reached $13.9 million, representing 27% of the revenue. Innodata also raised its full-year 2024 revenue guidance to $52-$55 million, indicating an 88%-92% growth. Cash reserves also saw an increase, reaching $26.4 million, up $10 million from the previous quarter. The company has also made strategic hires, including a high-level Ph.D. in AI, to bolster innovation. These recent developments suggest a strong business momentum for Innodata heading into the fourth quarter and beyond.
InvestingPro Insights
Recent transactions by Innodata Inc. (NASDAQ:INOD) director Stewart R. Massey reflect a dynamic period for the company's stock. InvestingPro data shows that INOD has experienced a remarkable 326.12% price total return over the past year, with an even more impressive 381.08% year-to-date return as of the latest available data.
The company's strong performance is further underscored by its revenue growth, which stands at 71.66% for the last twelve months as of Q3 2024. This aligns with an InvestingPro Tip indicating that analysts anticipate sales growth in the current year. Additionally, the company's profitability outlook appears positive, with another InvestingPro Tip suggesting that net income is expected to grow this year.
Despite the recent insider sale, Innodata's financial health seems robust. The company holds more cash than debt on its balance sheet, according to an InvestingPro Tip, which could provide financial flexibility for future growth initiatives.
It's worth noting that INOD is trading at a high P/E ratio of 55.85, which may reflect investor optimism about the company's growth prospects. However, this also means the stock is trading at a high earnings multiple, as pointed out by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 23 additional tips for INOD, providing a deeper understanding of the company's financial position and market performance.
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