Digi International (NASDAQ:DGII) Price Target Raised to $75.00

Key Points

• Craig Hallum raised its price target on Digi International from $50 to $75 and kept a buy rating, implying roughly a 27.4% upside from the current share price.
• Digi beat quarterly estimates with EPS of $0.56 and revenue of $122.46M (+17.9% YoY); shares trade around $58.85, with a market cap of $2.21B and a P/E of about 52.5.
• The consensus from analysts is a Moderate Buy with an average target of $54.80; insiders sold 13,455 shares (~$616K) in the past three months while institutional investors own about 95.9% of the stock.

Digi International (NASDAQ:DGII - Get Free Report) had its target price increased by research analysts at Craig Hallum from $50.00 to $75.00 in a research note issued to investors on Thursday. The firm currently has a "buy" rating on the technology company's stock. Craig Hallum's price target points to a potential upside of 27.44% from the stock's current price.

Several other equities analysts have also weighed in on DGII. Wall Street Zen raised Digi International from a "buy" rating to a "strong-buy" rating in a research note on Saturday, January 31st. Zacks Research upgraded Digi International from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Digi International in a research note on Monday, March 23rd. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $54.80.

Digi International Price Performance

Shares of DGII stock opened at $58.85 on Thursday. Digi International has a 1 year low of $27.71 and a 1 year high of $59.40. The company has a current ratio of 1.24, a quick ratio of 0.90 and a debt-to-equity ratio of 0.21. The firm's 50 day moving average is $51.81 and its 200-day moving average is $45.81. The firm has a market capitalization of $2.21 billion, a price-to-earnings ratio of 52.54 and a beta of 0.94.

Digi International (NASDAQ:DGII - Get Free Report) last released its earnings results on Wednesday, February 4th. The technology company reported $0.56 earnings per share for the quarter, topping analysts' consensus estimates of $0.55 by $0.01. Digi International had a return on equity of 10.93% and a net margin of 9.45%.The company had revenue of $122.46 million during the quarter, compared to the consensus estimate of $115.90 million. During the same quarter in the previous year, the company posted $0.45 earnings per share. The firm's quarterly revenue was up 17.9% on a year-over-year basis. Sell-side analysts forecast that Digi International will post 1.87 EPS for the current fiscal year.

Insider Activity at Digi International

In other Digi International news, VP David H. Sampsell sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $45.74, for a total transaction of $228,700.00. Following the sale, the vice president directly owned 24,740 shares in the company, valued at approximately $1,131,607.60. This trade represents a 16.81% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, VP James E. Freeland sold 1,355 shares of the company's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $45.84, for a total transaction of $62,113.20. Following the completion of the transaction, the vice president owned 19,987 shares of the company's stock, valued at $916,204.08. This trade represents a 6.35% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 13,455 shares of company stock worth $616,357. 3.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Digi International

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. SG Americas Securities LLC raised its stake in shares of Digi International by 445.3% in the 3rd quarter. SG Americas Securities LLC now owns 30,670 shares of the technology company's stock valued at $1,118,000 after purchasing an additional 25,046 shares during the period. Hillsdale Investment Management Inc. boosted its position in shares of Digi International by 47.2% during the third quarter. Hillsdale Investment Management Inc. now owns 181,255 shares of the technology company's stock worth $6,609,000 after buying an additional 58,100 shares during the period. AEGON ASSET MANAGEMENT UK Plc bought a new position in shares of Digi International during the fourth quarter worth about $2,000,000. Herald Investment Management Ltd grew its holdings in shares of Digi International by 25.0% during the third quarter. Herald Investment Management Ltd now owns 100,000 shares of the technology company's stock worth $3,646,000 after buying an additional 20,000 shares in the last quarter. Finally, Horizon Investments LLC bought a new stake in Digi International in the 4th quarter valued at approximately $598,000. 95.90% of the stock is owned by institutional investors and hedge funds.

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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