Shares of Innodata Inc (INOD) plunged 9.13% in pre-market trading on Friday, despite the company reporting better-than-expected first-quarter earnings. The sharp decline appears to be primarily driven by Wedbush's decision to significantly lower its price target on the stock.

Innodata reported adjusted earnings of 22 cents per share for the quarter ended March 31, 2025, surpassing the mean analyst expectation of 17 cents per share. The company's revenue came in at $58.34 million, also beating the Street's forecast of $57.65 million. Despite this strong performance, investors seemed more focused on Wedbush's bearish move.

Wedbush analysts adjusted their price target on Innodata to $58 from $75, while maintaining an Outperform rating. This substantial reduction in the price target, representing a 22.7% decrease, appears to have spooked investors, leading to the significant sell-off. The average analyst price target now stands at $67.80, with the stock still maintaining a consensus "buy" rating from Wall Street analysts.