Digi International (NASDAQ:DGII) Sees Large Volume Increase - Here's Why

Key Points

• Analyst sentiment remains favorable: B. Riley, Roth Capital, and Stephens raised or set price targets between $85 and $90, while the consensus target is $82.40 and the overall rating is “Moderate Buy.”
• Digi reported a strong quarter: Earnings of $0.75 per share beat estimates of $0.66, while revenue reached $138.67 million, up 29% year over year and ahead of expectations.
• Trading activity was elevated: About 323,081 shares changed hands, although that was 6% below the prior session’s volume; the stock traded near $74.89, and institutional investors own 95.9% of shares.

Shares of Digi International Inc. (NASDAQ:DGII - Get Free Report) saw unusually-strong trading volume on Tuesday. 323,081 shares traded hands during mid-day trading, a decline of 6% from the previous session's volume of 345,133 shares. The stock last traded at $74.8850 and had previously closed at $74.56.

Analysts Set New Price Targets

DGII has been the subject of a number of recent research reports. B. Riley Financial increased their price objective on shares of Digi International from $78.00 to $86.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Roth Capital set a $90.00 target price on shares of Digi International and gave the company a "buy" rating in a research report on Thursday, August 6th. Weiss Ratings raised shares of Digi International from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Friday. Stephens increased their price target on shares of Digi International from $75.00 to $85.00 and gave the stock an "overweight" rating in a research report on Thursday, August 6th. Finally, Zacks Research cut shares of Digi International from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 3rd. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $82.40.

Digi International Stock Down 0.8%

The firm has a market cap of $2.81 billion, a price-to-earnings ratio of 58.92 and a beta of 0.96. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.78 and a current ratio of 1.13. The business's 50-day moving average is $74.49 and its 200-day moving average is $66.37.

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

Hedge Funds Weigh In On Digi International

Several institutional investors have recently bought and sold shares of the business. GAMMA Investing LLC increased its position in shares of Digi International by 17.0% during the second quarter. GAMMA Investing LLC now owns 2,576 shares of the technology company's stock worth $193,000 after acquiring an additional 374 shares in the last quarter. USA Financial Formulas lifted its position in Digi International by 109.3% in the 1st quarter. USA Financial Formulas now owns 946 shares of the technology company's stock valued at $46,000 after acquiring an additional 494 shares in the last quarter. Glenmede Trust Co. NA boosted its stake in Digi International by 11.2% in the 1st 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 during the period. Global Retirement Partners LLC acquired a new position in Digi International in the 2nd quarter worth $154,000. Finally, State of Wyoming bought a new position in Digi International during the 2nd quarter worth about $160,000. Institutional investors own 95.90% of the company's stock.

Digi International Company Profile

Digi International Inc NASDAQ: DGII provides business and industrial Internet of Things (IoT) connectivity products and solutions. The company helps organizations connect, monitor and manage equipment, sensors and other devices over cellular, wireless and wired networks.

Its product portfolio includes industrial routers and gateways, embedded systems and wireless modules, console servers, serial connectivity products and infrastructure for machine-to-machine communications. Digi also offers cloud-based device management and monitoring through Digi Remote Manager, along with professional services and support designed to help customers deploy and maintain connected devices.

Digi's solutions are used across industries such as transportation, energy, healthcare, manufacturing, retail, government and commercial services.

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