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

Key Points

• Digi International shares rose above their 200-day moving average during Thursday’s trading, with the stock trading as high as $68.70 and last changing hands at $68.33.
• Recent analyst sentiment is mostly positive, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating and an average target price of $66.20.
• The company reported better-than-expected quarterly results, including EPS of $0.62 versus $0.58 expected and revenue growth of 25.1% year over year; however, insiders have also been selling shares recently.

Digi International Inc. (NASDAQ:DGII - Get Free Report) passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $50.91 and traded as high as $68.70. Digi International shares last traded at $68.33, with a volume of 260,479 shares trading hands.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on DGII shares. Stephens upped their target price on shares of Digi International from $65.00 to $75.00 and gave the company an "overweight" rating in a research note on Tuesday, May 12th. Craig Hallum upped their target price on shares of Digi International from $50.00 to $75.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Roth Mkm reissued a "buy" rating and set a $70.00 price target on shares of Digi International in a report on Thursday, May 7th. Weiss Ratings lowered shares of Digi International from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, May 11th. Finally, Zacks Research upgraded shares of Digi International from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $66.20.

Digi International Stock Performance

The stock has a market capitalization of $2.58 billion, a price-to-earnings ratio of 60.47 and a beta of 0.98. The company has a quick ratio of 0.77, a current ratio of 1.11 and a debt-to-equity ratio of 0.21. The stock's 50-day simple moving average is $60.21 and its 200 day simple moving average is $50.91.

Digi International (NASDAQ:DGII - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.62 EPS for the quarter, beating analysts' consensus estimates of $0.58 by $0.04. The firm had revenue of $130.74 million for the quarter, compared to analyst estimates of $125.03 million. Digi International had a net margin of 9.10% and a return on equity of 11.28%. The company's revenue for the quarter was up 25.1% compared to the same quarter last year. During the same period in the previous year, the business earned $0.51 earnings per share. Digi International has set its Q3 2026 guidance at 0.650-0.680 EPS. Analysts expect that Digi International Inc. will post 2.11 earnings per share for the current fiscal year.

Insider Activity at Digi International

In other news, VP David H. Sampsell sold 6,376 shares of the company's stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $65.11, for a total transaction of $415,141.36. Following the transaction, the vice president directly owned 18,364 shares in the company, valued at approximately $1,195,680.04. This represents a 25.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO James J. Loch sold 100,000 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $69.44, for a total transaction of $6,944,000.00. Following the transaction, the chief financial officer owned 167,589 shares in the company, valued at $11,637,380.16. The trade was a 37.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 121,008 shares of company stock valued at $8,320,222 over the last ninety days. Company insiders own 3.40% of the company's stock.

Hedge Funds Weigh In On Digi International

A number of large investors have recently modified their holdings of the stock. Glenmede Trust Co. NA lifted its position in shares of Digi International by 11.2% during the first quarter. Glenmede Trust Co. NA now owns 18,712 shares of the technology company's stock worth $902,000 after purchasing an additional 1,888 shares in the last quarter. California State Teachers Retirement System lifted its position in shares of Digi International by 30.3% during the first quarter. California State Teachers Retirement System now owns 45,815 shares of the technology company's stock worth $2,208,000 after purchasing an additional 10,661 shares in the last quarter. Hillsdale Investment Management Inc. lifted its position in shares of Digi International by 3.4% during the first quarter. Hillsdale Investment Management Inc. now owns 199,635 shares of the technology company's stock worth $9,622,000 after purchasing an additional 6,480 shares in the last quarter. Strs Ohio lifted its position in shares of Digi International by 147.1% during the first quarter. Strs Ohio now owns 16,800 shares of the technology company's stock worth $810,000 after purchasing an additional 10,000 shares in the last quarter. Finally, SG Americas Securities LLC lifted its position in shares of Digi International by 84.4% during the first quarter. SG Americas Securities LLC now owns 47,149 shares of the technology company's stock worth $2,273,000 after purchasing an additional 21,584 shares in the last quarter. 95.90% of the stock is currently 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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