Innodata Story

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INOD -- USA Stock  

USD 2.29  0.02  0.88%

It looks as if Innodata will continue to recover much faster as its share price surged up 1.82% today. Innodata's current daily volatility is 4.18 percent, with a beta of 1.15 and an alpha of 0.43 over DOW. While some millenniums are indifferent towards business services, it makes sense to digest Innodata. We will evaluate why recent Innodata price moves suggest a bounce in September.
Published over a month ago
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Is Innodata (NASDAQ:INOD) a good short term trade as volatility ascents?
Innodata currently holds roughly 13.48 M in cash with 4.92 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.55. We provide advice to complement the regular expert consensus on Innodata. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Investing in Innodata, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Innodata along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.

How important is Innodata's Liquidity

Innodata financial leverage refers to using borrowed capital as a funding source to finance Innodata ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Innodata financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Innodata's total debt and its cash.

How Innodata utilizes its cash?

To perform a cash flow analysis of Innodata, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Innodata is receiving and how much cash it distributes out in a given period. The Innodata cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Innodata Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 4.85 Million

Innodata Correlation with Peers

Investors in Innodata can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Innodata. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Innodata and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Innodata is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of Innodata for more details

Is Innodata valued correctly by the market?

Innodata appears to be dangerous, given 1 month investment horizon. Innodata holds Efficiency (Sharpe) Ratio of 0.14, which attests that the entity had 0.14% of return per unit of risk over the last month. Our standpoint towards determining the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By evaluating Innodata technical indicators you can presently evaluate if the expected return of 0.6% is justified by implied risk. Please utilize Innodata Risk Adjusted Performance of 0.2344, downside deviation of 4.63, and Market Risk Adjusted Performance of 0.5844 to validate if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Momentum Analysis of Innodata suggests possible reversal in September

Latest Skewness is up to -0.1. Price may dip again. As of the 19th of August, Innodata retains the Downside Deviation of 4.63, risk adjusted performance of 0.2344, and Market Risk Adjusted Performance of 0.5844. Innodata technical analysis makes it possible for you to employ historical prices and volume momentum with the intention to determine a pattern that calculates the direction of the firm's future prices. Simply put, you can use this information to find out if the firm will indeed mirror its model of historical price patterns, or the prices will eventually revert. We were able to break down nineteen technical drivers for Innodata, which can be compared to its competitors. Please check out Innodata jensen alpha, as well as the relationship between the potential upside and skewness to decide if Innodata is priced fairly, providing market reflects its last-minute price of 1.68 per share. Please also validate Innodata total risk alpha, which is currently at 0.0848 to confirm the company can sustain itself at a future point.

Our Final Takeaway

Although other companies under the information technology services industry are still a bit expensive, Innodata may offer a potential longer-term growth to shareholders. While some shareholders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Innodata.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Innodata. Please refer to our Terms of Use for any information regarding our disclosure principles.

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