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Key Insights

• The considerable ownership by individual investors in Innodata indicates that they collectively have a greater say in management and business strategy

• The top 25 shareholders own 41% of the company

• Insiders have sold recently

Every investor in Innodata Inc. (NASDAQ:INOD) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 54% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 41% shares weren’t spared from last week’s US$104m market cap drop, individual investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Innodata, beginning with the chart below.

See our latest analysis for Innodata

What Does The Institutional Ownership Tell Us About Innodata?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Innodata does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Innodata's historic earnings and revenue below, but keep in mind there's always more to the story.

Innodata is not owned by hedge funds. BlackRock, Inc. is currently the largest shareholder, with 6.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.4% and 5.3%, of the shares outstanding, respectively. Additionally, the company's CEO Jack Abuhoff directly holds 4.1% of the total shares outstanding.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.