Digi International (NASDAQ:DGII) Share Price Passes Above 200 Day Moving Average - Here's Why

Key Points

• Digi International's stock price has surpassed its 200-day moving average of $31.90, reaching a high of $37.83 during trading.
• Wall Street analysts are optimistic about Digi International, with one analyst setting a target price of $50.00 and the consensus rating of the stock at "Moderate Buy".
• The company reported $107.51 million in revenue for the last quarter, beating analyst estimates and marking a 2.2% increase year-over-year.

Digi International Inc. (NASDAQ:DGII - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $31.90 and traded as high as $37.83. Digi International shares last traded at $37.06, with a volume of 191,674 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on DGII shares. Stephens reaffirmed an "overweight" rating and issued a $50.00 target price on shares of Digi International in a report on Tuesday, August 19th. Piper Sandler boosted their price target on shares of Digi International from $30.00 to $33.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. B. Riley upped their price objective on shares of Digi International from $35.00 to $40.00 and gave the stock a "buy" rating in a research note on Thursday, August 7th. Finally, Roth Capital reiterated a "buy" rating on shares of Digi International in a research note on Thursday, August 7th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $38.75.

Digi International Price Performance

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 has a market capitalization of $1.38 billion, a P/E ratio of 32.51, a PEG ratio of 1.29 and a beta of 0.87. The company has a fifty day simple moving average of $34.14 and a two-hundred day simple moving average of $31.90.

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

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Lazard Asset Management LLC lifted its stake in Digi International by 25.1% in the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company's stock valued at $58,000 after buying an additional 339 shares during the period. Ameriprise Financial Inc. increased its stake in shares of Digi International by 7.7% in the 2nd quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company's stock valued at $22,736,000 after acquiring an additional 46,659 shares during the last quarter. Rhumbline Advisers raised its position in shares of Digi International by 3.6% in the 2nd quarter. Rhumbline Advisers now owns 107,050 shares of the technology company's stock valued at $3,732,000 after acquiring an additional 3,722 shares during the period. Hillsdale Investment Management Inc. bought a new position in Digi International during the 2nd quarter worth approximately $4,293,000. Finally, SG Americas Securities LLC acquired a new position in Digi International during the second quarter valued at approximately $196,000. 95.90% of the stock is currently owned by institutional investors.

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.

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