What’s shocking about Innodata Inc. (NASDAQ:INOD)?


Shares of Innodata Inc. (NASDAQ:INOD) are currently poised at -13.16% from the open today and are trading at $1.65. More than 206,397 shares have exchanged hands compared to an average trading volume of 26.92K. At the current pps, the market cap stands at $44.85M. The stock prices of Innodata Inc. (NASDAQ:INOD) are currently trading at -41.09% below its 52 week high and -13.16% above its 52 week low.

Innodata Inc. (NASDAQ:INOD) has been in the news for all the right reasons.

Innodata Inc. (NASDAQ:INOD) today reported results for the first quarter ended March 31, 2017.

– Total revenue was $15.0 million in the first quarter of 2017, a 5% decline from $15.7 million in both the first and fourth quarters of 2016.

– Net loss was $1.7 million in the first quarter of 2017, or $(0.07) per diluted share, compared to a net loss of $1.0 million in the fourth quarter of 2016, or $(0.04) per diluted share. Net earnings in the first quarter of 2016 was $3,000, or $0.00 per diluted share.

– Adjusted EBITDA (as defined below) was a loss of $0.2 million in the first quarter of 2017 compared to income of $0.4 million in the fourth quarter of 2016 and $1.4 million in the first quarter of 2016.

– Cash, cash equivalents and investments were $14.2 million at both March 31, 2017 and December 31, 2016.

Innodata Inc. (NASDAQ:INOD) is all set to announce its earnings on May 08/b. As per Zack’s analyst ratings, Innodata Inc. (NASDAQ:INOD) currently has an average brokerage rating of 3. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:INOD) is $ with a high of $ and a low of $.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 100% Sell with a Strongest short term outlook on maintaining the current direction. Longer term, the trend strength is in the Top 1%. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 1.88 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 2.03 is also higher than the current trading price depicting a bearish trend overall.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 31.32 suggesting a bearish price action.

As such, while we believe Innodata Inc. (NASDAQ:INOD) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

Innodata Isogen is a leading provider of content supply chain solutions.

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