Digi International (NASDAQ:DGII) Stock Crosses Above 200-Day Moving Average - Time to Sell?

Key Points

• Digi International's stock recently crossed above its 200-day moving average of $31.47, with shares trading at $34.72.
• Analysts have raised target prices for Digi International, with estimates ranging from $35.00 to $50.00, indicating a generally positive outlook for the stock.
• The company reported a net margin of 10.14% and a revenue increase of 2.2% year-over-year, with earnings per share (EPS) beating estimates.

Digi International Inc. (NASDAQ:DGII - Get Free Report)'s share price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $31.47 and traded as high as $35.10. Digi International shares last traded at $34.72, with a volume of 205,671 shares trading hands.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on DGII. Stephens reaffirmed an "overweight" rating and set a $50.00 price objective on shares of Digi International in a research report on Tuesday, August 19th. B. Riley increased their price objective on shares of Digi International from $35.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Roth Capital reaffirmed a "buy" rating on shares of Digi International in a research report on Thursday, August 7th. Wall Street Zen raised shares of Digi International from a "buy" rating to a "strong-buy" rating in a research report on Tuesday, May 20th. Finally, Piper Sandler increased their price objective on shares of Digi International from $30.00 to $33.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Digi International presently has a consensus rating of "Moderate Buy" and a consensus price target of $38.75.

Digi International Stock Performance

The company has a market capitalization of $1.25 billion, a price-to-earnings ratio of 29.47, a price-to-earnings-growth ratio of 1.19 and a beta of 0.87. The company has a current ratio of 1.43, a quick ratio of 1.03 and a debt-to-equity ratio of 0.06. The stock's fifty day simple moving average is $33.76 and its 200-day simple moving average is $31.45.

Digi International (NASDAQ:DGII - Get Free Report) last released its earnings results on Wednesday, August 6th. The technology company reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.02. Digi International had a net margin of 10.14% and a return on equity of 10.96%. The company had revenue of $107.51 million for the quarter, compared to analyst estimates of $106.23 million. During the same period in the prior year, the business earned $0.50 EPS. The firm's quarterly revenue was up 2.2% on a year-over-year basis. Analysts predict that Digi International Inc. will post 1.68 EPS for the current year.

Institutional Investors Weigh In On Digi International

Hedge funds and other institutional investors have recently modified their holdings of the company. Lazard Asset Management LLC acquired a new stake in shares of Digi International in the 4th quarter valued at $45,000. GAMMA Investing LLC raised its stake in Digi International by 67.8% during the 2nd quarter. GAMMA Investing LLC now owns 1,696 shares of the technology company's stock worth $59,000 after acquiring an additional 685 shares in the last quarter. Farther Finance Advisors LLC raised its stake in Digi International by 5,263.2% during the 2nd quarter. Farther Finance Advisors LLC now owns 2,038 shares of the technology company's stock worth $71,000 after acquiring an additional 2,000 shares in the last quarter. SG Americas Securities LLC acquired a new stake in Digi International during the 2nd quarter worth $196,000. Finally, KLP Kapitalforvaltning AS raised its stake in Digi International by 20.0% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 7,800 shares of the technology company's stock worth $272,000 after acquiring an additional 1,300 shares in the last quarter. 95.90% of the stock is currently owned by institutional investors and hedge funds.

About Digi International

Digi International Inc provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. The company operates in two segments, IoT Products & Services, and IoT Solutions. It offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand.