Innodata Inc.
Orin's own judgment of how firmly the evidence points one way — not the chance the price goes up.
Innodata's fundamentals remain exceptional—Q2 2026 revenue of $92.1M grew 58% YoY, operating margin expanded to 16.0% in FY2025 from 14.2% in FY2024, and the company beat Q2 2026 EPS estimates by 92%—but the stock has broken down technically, closing at $52.82, below both the 50-day ($60.70) and 200-day ($61.80) moving averages with an RSI of 36.7 and a deeply negative MACD histogram of -1.66 as of 16 Oct.
The valuation still carries an 82% premium to the peer median PE of 20.3x, and insiders have sold a net $286.9M over 24 months with zero open-market acquisitions, making this a wait-and-see ahead of Q3 2026 results on November 5.
What could go wrong
- Customer concentration. Per Seeking Alpha, the largest customer dropped from 56% to 37% of revenue—improving but still a significant concentration risk that could pressure results if that relationship weakens.
- Persistent insider selling. Over 24 months, insiders disposed of a net 4.2M shares worth $286.9M with 0 open-market acquisitions, signaling limited insider confidence at current levels.
- Premium valuation vs peers. PE of 36.9x is an 82% premium to the peer median of 20.3x, and EV/EBITDA of 23.1x is 47% above the peer median of 15.8x, leaving little room for execution missteps.
- Technical breakdown. Stock at $52.82 is below both the 50-day and 200-day moving averages with RSI at 36.7 and MACD histogram at -1.66, suggesting bearish momentum that could deepen on any negative catalyst.
What would change my mind
Where this comes from: Q2 2026 results · FY24 and FY25 fundamentals · earnings vs estimates, 6 Aug · technicals, 16 Oct. Orin's read on INOD; not advice.
How has the share price moved?
Down 43.6% over twelve months, from $79.34 on 27 Oct 2025 to $44.74 at the Tue 27 Oct 2026 close. Its highest close in that time was $121.50 on 4 Jun 2026; the last close is 63.2% below it.
- Green line: the closing price each trading day.
- Grey line: the average closing price over the last 50 trading days.
- Dashed amber line: the same over the last 200 trading days — a slower, smoother line.
- Bars along the bottom: shares traded each day — green when it closed higher than the day before, rose when lower (the most, 19.2M, on 8 May 2026).
- Flags: the company's filings, on the day they were made (a 10-Q is the quarterly report and a 10-K the annual report; an 8-K reports a major event).
- Rose flags: large share sales by the company's own officers and directors, from the Form 4 each one files after trading.
On file
All INOD filingsLargest holders · 13F Q2 2026
Money flow| Filer | Position | Of fund |
|---|---|---|
| BlackRock | $205.4M | 0.0% |
| Vanguard Capital Management | $105.1M | 0.0% |
| D. E. Shaw | $66.4M | 0.0% |
| Geode Capital Management | $63.2M | 0.0% |
| State Street | $61.3M | 0.0% |
| JPMorgan Chase | $36.8M | 0.0% |
| Two Sigma Investments | $30.9M | 0.0% |
| Vanguard Portfolio Management | $29.1M | 0.0% |
| Morgan Stanley | $28.7M | 0.0% |
| Northern Trust | $23.9M | 0.0% |
51 of the 815 filers we track · quarter ended Q2 2026 · positions, not flows
Insiders, last 24 months: 281 Form 4 filings; open-market trades net −$286.9M. Of the 50 on hand, 0 were open-market purchases and 24 sales — the rest are grants, option exercises and tax withholding.
Ask Orin about INOD
Orin answers questions about INOD from its filings, transcripts and numbers — with the source behind every claim. Your own desk starts with 3 free days, card required.
Start 3 free days →How is it priced, against its own past and its sector?
Priced at 26.3× its last 12 months of profit (Thu 5 Nov close) — below its usual level (45.4×); the typical Technology company on the NASDAQ is at 46.1×.
| Measure | Now | Its usual | Sector |
|---|---|---|---|
| P/E | 26.3×below usual | 45.4× | 46.1× |
| P/S | 3.79× | — | — |
| EV/EBITDA | 21.5×below usual | 40.3× | — |
| P/B | 7.5×below usual | 8.9× | — |
- P/S: no usual level — it ran from 1.02× to 6.76× over its last 5 fiscal years, so a middle value says little.
- "Its usual" is the middle of its own last 5 fiscal years.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
P/S: the company's total market value divided by one year of revenue. Used when there is no profit to measure.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
P/B: the share price divided by the book value per share — what the company owns minus what it owes, as its accounts record it. When book value is tiny, P/B swings wildly and says little.
What do the analysts who cover it publish?
Few analysts publish on it: 2 firms rated it in the last 18 months. Every 12-month price target on file is $120 (the low and the high are the same, so it may be a single analyst's) — 168% above the Tue 27 Oct close price. With so few, it is not a consensus; it is their published opinion, not Orin's.
$120
$120 – $120 · +168% against the last close
- 2 buy or overweight
- 0 hold
- 0 underweight or sell
Price target: the share price an analyst publishes for about 12 months ahead. It is the opinion of the firm that wrote it; the average is across the firms that cover the company.
Overweight / underweight: analysts' rating words: overweight means the firm expects the stock to do better than the others it covers, underweight worse. Their words, not Orin's.
How is it priced next to the companies it is compared to?
Priced at 26.3× its last 12 months of profit. Only 1 of the 1 companies it is compared to made a profit (IBM 21.0×), so there is no typical P/E.
| Company | Market value | P/E | EV/EBITDA | Gross margin | Net margin | ROE |
|---|---|---|---|---|---|---|
| INODInnodata Inc. | $1B | 26.3× | 21.5× | 31.2% | 13.8% | 34% |
| IBMInternational Business Machines Corporation | $237B | 21.0× | 16.6× | 58.0% | 16.0% | 33% |
- The list of companies is the data vendor's choice, so it can include a company a person would not have picked.
Market value: the share price times the number of shares — what the whole company is priced at.
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
EV/EBITDA: the price of the whole company (its shares plus its debt, minus its cash) divided by one year of operating profit before interest, tax and write-downs.
Gross margin: the share of each $1 of sales left after the direct cost of making what was sold.
Net margin: the share of each $1 of sales kept as profit after every cost. Below zero, the company lost money.
ROE: return on equity: one year of profit as a share of the shareholders' money in the business (its book value).
Is it priced high or low compared with its own past?
Priced at 26.3× its last 12 months of profit (Thu 5 Nov close). It has no full fiscal year on file since its history starts, so there is nothing of its own to compare with.
- Now26.3×
P/E: the share price divided by one year of profit per share — roughly how many years of today's profit the price pays for. A company that loses money has no P/E.
Fiscal year (FY): the company's own 12-month accounting year, which need not match the calendar year.
How has its sector been priced?
Technology companies on the NASDAQ were priced at a typical 46.1× their yearly profit (Tue 27 Oct close).
- Now46.1×
- Each year is the middle of that calendar year's daily sector P/E; "Now" is the Tue 27 Oct close figure, the same one in the table above.
Sector P/E: the middle P/E of the companies in the same sector on the same stock exchange, as the data vendor works it out each day.
What does a cash-flow model say a share is worth?
A standard cash-flow model puts it at $10 a share — 78% below the $43.74 price it was computed against (27 Oct).
| Model | Value a share | Against the price then |
|---|---|---|
| Levered | $10 | 78% below $43.74 |
- Standard: comes out below zero, so it is not shown.
Discounted cash flow: a model's estimate of what the company is worth today, from the cash it is forecast to make in future years. Small changes in the forecast move it a lot, and it says little about a company that loses money.
Standard / levered: two versions of the cash-flow model: the standard one counts the cash before the company pays its lenders, the levered one after.