Digi International (NASDAQ:DGII) Trading 4.9% Higher - 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% on Tuesday . The stock traded as high as $35.14 and last traded at $35.11. Approximately 99,542 shares were traded during mid-day trading, a decline of 49% from the average daily volume of 194,935 shares. The stock had previously closed at $33.46.

Analysts Set New Price Targets

DGII has been the subject of several recent analyst reports. Piper Sandler upped their price target on Digi International from $30.00 to $33.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Stephens reiterated an "overweight" rating and set a $50.00 target price on shares of Digi International in a research report on Tuesday, August 19th. B. Riley increased their target price on Digi International from $35.00 to $40.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. Roth Capital reiterated a "buy" rating on shares of Digi International in a research report on Thursday, August 7th. Finally, Wall Street Zen upgraded Digi International from a "buy" rating to a "strong-buy" rating in a research report on Tuesday, May 20th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $38.75.

Digi International Stock Up 4.7%

The company has a fifty day moving average of $33.65 and a two-hundred day moving average of $31.49. The company has a market cap of $1.28 billion, a PE ratio of 30.23, a price-to-earnings-growth ratio of 1.19 and a beta of 0.89. The company has a debt-to-equity ratio of 0.06, a quick ratio of 1.03 and a current ratio of 1.43.

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

Institutional Trading of Digi International

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Lazard Asset Management LLC increased 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 worth $58,000 after purchasing an additional 339 shares during the period. Ameriprise Financial Inc. increased its stake in Digi International by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company's stock worth $22,736,000 after purchasing an additional 46,659 shares during the period. Rhumbline Advisers increased its stake in Digi International by 3.6% in the second quarter. Rhumbline Advisers now owns 107,050 shares of the technology company's stock worth $3,732,000 after purchasing an additional 3,722 shares during the period. Hillsdale Investment Management Inc. purchased a new stake in Digi International in the second quarter worth $4,293,000. Finally, SG Americas Securities LLC purchased a new stake in Digi International in the second quarter worth $196,000. Hedge funds and other institutional investors own 95.90% of the company's stock.

Digi International Company Profile

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.