RIDGEFIELD PARK, N.J.—Nauman Sabeeh Toor, a director at Innodata Inc. (NASDAQ:INOD), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Toor sold a total of 40,000 shares of Innodata's common stock over two consecutive days.
The transactions, which occurred on November 12 and 13, involved shares sold at prices ranging from $46.00 to $46.07 per share. The total value of these sales amounts to approximately $1.84 million.
Following these transactions, Toor retains ownership of 679,401 shares in the company. This includes 12,417 restricted stock units, which are set to vest by June 2025 or at the company's 2025 annual meeting, with further conditions outlined in Innodata's deferred compensation program.
Innodata Inc., headquartered in Ridgefield Park, New Jersey, specializes in computer processing and data preparation services.
In other recent news, Innodata reported a record Q3 revenue of $52 million, marking a 136% increase year-over-year. The company's adjusted EBITDA reached $27% of the revenue, standing at $13.9 million. This significant growth was largely driven by a $30.6 million revenue contribution from a single Big Tech customer and expanded federal government engagements. Innodata also raised its full-year 2024 revenue guidance to $52-$55 million, indicating an 88%-92% growth. Cash reserves increased to $26.4 million, up $10 million from the previous quarter. The company also received SEC approval for a $50 million securities offering, although no immediate fundraising plans have been announced. These recent developments highlight Innodata's strong business momentum as it heads into the fourth quarter and the upcoming year.
InvestingPro Insights
The recent insider sale by Nauman Sabeeh Toor comes at a time when Innodata (NASDAQ:INOD) is experiencing significant growth and market attention. 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, and an even more striking 135.57% growth in the most recent quarter.
This growth is reflected in the stock's performance, with InvestingPro reporting a 326.12% price total return over the past year. The company's market capitalization stands at $1.13 billion, indicating substantial investor interest.
However, investors should note that INOD is trading at a high P/E ratio of 55.85, which suggests the stock may be priced at a premium relative to its earnings. This valuation metric aligns with an InvestingPro Tip indicating that the stock is "Trading at a high earnings multiple."
Another relevant InvestingPro Tip highlights that INOD "Holds more cash than debt on its balance sheet," which could be seen as a positive factor for the company's financial stability amidst its rapid growth.
For readers interested in a more comprehensive analysis, InvestingPro offers 23 additional tips for INOD, providing a deeper dive into the company's financial health and market position.
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