Digi International (NASDAQ:DGII) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Digi International from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy,” with four Buy ratings, three Hold ratings and a $66.20 average price target.
• Digi shares opened at $72.14, near their 52-week high of $76.41. The company recently exceeded quarterly expectations, reporting $0.62 in adjusted EPS and $130.74 million in revenue, with revenue up 25.1% year over year.
• Insiders sold 121,008 shares worth approximately $8.32 million during the last quarter, while institutional investors own 95.9% of the stock.

Digi International (NASDAQ:DGII - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued to investors on Monday,Zacks.com reports.

Other equities research analysts have also recently issued research reports about the stock. Weiss Ratings raised shares of Digi International from a "hold (c)" rating to a "hold (c+)" rating in a research report on Monday. Stephens increased their target price on shares of Digi International from $65.00 to $75.00 and gave the stock an "overweight" rating in a report on Tuesday, May 12th. Craig Hallum boosted their price target on Digi International from $50.00 to $75.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Roth Capital reiterated a "buy" rating and issued a $70.00 price objective on shares of Digi International in a report on Thursday, May 7th. Finally, Piper Sandler boosted their target price on Digi International from $46.00 to $63.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $66.20.

Digi International Trading Up 2.5%

Shares of DGII stock opened at $72.14 on Monday. The business has a 50-day moving average of $68.48 and a 200 day moving average of $57.65. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.11 and a quick ratio of 0.77. Digi International has a 1-year low of $30.69 and a 1-year high of $76.41. The stock has a market capitalization of $2.72 billion, a PE ratio of 63.84 and a beta of 0.97.

Digi International (NASDAQ:DGII - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.62 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $0.04. Digi International had a return on equity of 11.28% and a net margin of 9.10%.The business had revenue of $130.74 million for the quarter, compared to analysts' expectations of $125.03 million. During the same period in the previous year, the firm earned $0.51 EPS. The business's quarterly revenue was up 25.1% on a year-over-year basis. As a group, sell-side analysts anticipate that Digi International will post 2.11 earnings per share for the current year.

Insider Activity

In related news, VP David H. Sampsell sold 6,376 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $65.11, for a total transaction of $415,141.36. Following the sale, the vice president directly owned 18,364 shares of the company's stock, valued at approximately $1,195,680.04. This represents a 25.77% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, VP James E. Freeland sold 450 shares of the stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $68.00, for a total transaction of $30,600.00. Following the sale, the vice president directly owned 19,219 shares in the company, valued at $1,306,892. This trade represents a 2.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 121,008 shares of company stock worth $8,320,222. 3.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Digi International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DGII. Ameriprise Financial Inc. boosted its stake in Digi International by 7.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company's stock valued at $22,736,000 after purchasing an additional 46,659 shares during the last quarter. Hillsdale Investment Management Inc. increased its holdings in Digi International by 3.4% in the 1st quarter. Hillsdale Investment Management Inc. now owns 199,635 shares of the technology company's stock worth $9,622,000 after buying an additional 6,480 shares in the last quarter. Leuthold Group LLC increased its holdings in Digi International by 0.5% in the 4th quarter. Leuthold Group LLC now owns 56,738 shares of the technology company's stock worth $2,456,000 after buying an additional 264 shares in the last quarter. GW&K Investment Management LLC purchased a new position in Digi International in the 4th quarter worth about $2,410,000. Finally, Campbell & CO Investment Adviser LLC raised its position in Digi International by 65.0% in the 4th quarter. Campbell & CO Investment Adviser LLC now owns 47,468 shares of the technology company's stock worth $2,055,000 after buying an additional 18,706 shares during the last quarter. 95.90% of the stock is owned by institutional investors.

Digi International Company Profile

Digi International Inc is a provider of Internet of Things (IoT) connectivity products and services designed to link devices to networks and applications securely. The company develops a broad range of networking hardware, including cellular and Ethernet routers, gateways, embedded modules and adaptors, as well as accessories and antennas. Digi's solutions enable businesses to deploy remote monitoring, control and automation systems across diverse industries such as transportation, utilities, healthcare, retail and industrial manufacturing.

In addition to its physical devices, Digi offers cloud-based management software and professional services that simplify device configuration, monitoring and over-the-air updates.

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