Digi International (NASDAQ:DGII) Stock Price Up 4.9% - Should You Buy?

Key Points

• Digi International's stock rose 4.9%, closing at $35.11, following a trading day with reduced volume compared to its average.
• A number of analysts upgraded their ratings for Digi International, with Wall Street Zen moving it from "buy" to "strong-buy" and a consensus rating of "Moderate Buy" with an average price target of $38.75.
• In its latest earnings report, Digi International reported earnings of $0.53 per share, surpassing estimates, and a revenue increase of 2.2% year-over-year totaling $107.51 million.

Shares of Digi International Inc. (NASDAQ:DGII - Get Free Report) rose 4.9% during trading on Tuesday . The company traded as high as $35.14 and last traded at $35.11. Approximately 99,542 shares traded hands during trading, a decline of 49% from the average daily volume of 194,935 shares. The stock had previously closed at $33.46.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on DGII. Wall Street Zen upgraded shares of Digi International from a "buy" rating to a "strong-buy" rating in a research report on Tuesday, May 20th. Roth Capital restated a "buy" rating on shares of Digi International in a research report on Thursday, August 7th. Stephens restated an "overweight" rating and set a $50.00 price target on shares of Digi International in a research report on Tuesday. Piper Sandler boosted their price target 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. Finally, B. Riley boosted their price target 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. Three investment 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 presently has a consensus rating of "Moderate Buy" and an average price target of $38.75.

Digi International Stock Performance

The firm's fifty day moving average price is $33.66 and its 200 day moving average price is $31.39. 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 $1.30 billion, a price-to-earnings ratio of 30.64, a price-to-earnings-growth ratio of 1.11 and a beta of 0.89.

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

Institutional Investors Weigh In On Digi International

Large investors have recently added to or reduced their stakes in the business. Pacer Advisors Inc. grew its position in shares of Digi International by 2,297.0% in the 1st quarter. Pacer Advisors Inc. now owns 238,019 shares of the technology company's stock valued at $6,624,000 after buying an additional 228,089 shares during the last quarter. Hillsdale Investment Management Inc. purchased a new position in shares of Digi International in the 2nd quarter valued at $4,293,000. Jones Financial Companies Lllp grew its position in shares of Digi International by 9,344.7% in the 1st quarter. Jones Financial Companies Lllp now owns 108,614 shares of the technology company's stock valued at $3,023,000 after buying an additional 107,464 shares during the last quarter. Geneva Capital Management LLC grew its position in shares of Digi International by 5.9% in the 2nd quarter. Geneva Capital Management LLC now owns 1,730,417 shares of the technology company's stock valued at $60,322,000 after buying an additional 95,756 shares during the last quarter. Finally, Herald Investment Management Ltd purchased a new position in shares of Digi International in the 1st quarter valued at $2,226,000. 95.90% of the stock is owned by hedge funds and other 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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