Bank of America Corp DE Buys New Shares in Digi International Inc. $DGII

Key Points

• Bank of America acquired 1.24 million shares of Digi International valued at approximately $92.7 million, giving it a 3.26% stake. Institutional investors collectively own 95.9% of the company.
• Digi International reported strong quarterly results, with earnings of $0.75 per share and revenue of $138.67 million, exceeding analyst estimates; revenue increased 29% year over year.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $82.40, although some firms recently downgraded the stock to “Hold.”

Bank of America Corp DE purchased a new stake in shares of Digi International Inc. (NASDAQ:DGII - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm purchased 1,236,563 shares of the technology company's stock, valued at approximately $92,680,000. Bank of America Corp DE owned approximately 3.26% of Digi International as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in DGII. USA Financial Formulas boosted its stake in Digi International by 109.3% in the first quarter. USA Financial Formulas now owns 946 shares of the technology company's stock worth $46,000 after buying an additional 494 shares in the last quarter. Global Retirement Partners LLC purchased a new position in shares of Digi International during the second quarter worth approximately $154,000. State of Wyoming bought a new stake in shares of Digi International in the 2nd quarter worth approximately $160,000. GAMMA Investing LLC lifted its holdings in shares of Digi International by 17.0% in the 2nd quarter. GAMMA Investing LLC now owns 2,576 shares of the technology company's stock worth $193,000 after acquiring an additional 374 shares during the last quarter. Finally, Sanctuary Advisors LLC purchased a new stake in shares of Digi International in the 2nd quarter valued at $305,000. Institutional investors own 95.90% of the company's stock.

Digi International Trading Down 0.7%

NASDAQ:DGII opened at $72.13 on Friday. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of 57.25 and a beta of 0.97. The company has a quick ratio of 0.78, a current ratio of 1.13 and a debt-to-equity ratio of 0.16. The company's 50 day moving average price is $72.30 and its 200-day moving average price is $64.27. Digi International Inc. has a 52 week low of $34.41 and a 52 week high of $86.84.

Digi International (NASDAQ:DGII - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.66 by $0.09. Digi International had a net margin of 9.63% and a return on equity of 12.16%. The company had revenue of $138.67 million during the quarter, compared to analyst estimates of $132.57 million. During the same period in the previous year, the business earned $0.53 EPS. The firm's revenue for the quarter was up 29.0% on a year-over-year basis. Digi International has set its Q4 2026 guidance at 0.750-0.780 EPS. On average, equities research analysts forecast that Digi International Inc. will post 2.31 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Weiss Ratings lowered shares of Digi International from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 10th. B. Riley Financial upped their price target on shares of Digi International from $78.00 to $86.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Roth Capital set a $90.00 price objective on Digi International and gave the company a "buy" rating in a research note on Thursday, August 6th. Zacks Research downgraded Digi International from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Finally, Stephens boosted their target price on Digi International from $75.00 to $85.00 and gave the company an "overweight" rating in a research note on Thursday, August 6th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $82.40.

Digi International Company Profile

Digi International Inc NASDAQ: DGII provides business and industrial Internet of Things (IoT) connectivity solutions. Its products and services help organizations connect, monitor and manage devices, equipment and assets across distributed locations and networks.

The company's offerings include cellular routers and gateways, embedded and system-on-module solutions, industrial networking equipment, console servers and other wireless connectivity products. Digi also provides device-management software, including its Digi Remote Manager platform, which supports the deployment, configuration, monitoring and maintenance of connected devices.

Digi serves customers in industries such as transportation, energy, industrial automation, healthcare, retail and government.

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