Digi International (NASDAQ:DGII) Stock Breaks Below 200 Day Moving Average - Time to Sell?

Key Points

• Digi International shares fell below their 200-day moving average, trading as low as $61.34 and last at $62.30 versus the average of $63.43; the 50-day average was $73.27.
• Analysts remain broadly positive: five rate the stock Buy and two Hold, giving it a Moderate Buy consensus and an average price target of $82.40.
• The company’s latest reported quarter beat expectations, with EPS of $0.75 versus $0.66 expected and revenue of $138.67 million versus $132.57 million; revenue rose 29% year over year.

Digi International Inc. (NASDAQ:DGII - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $63.43 and traded as low as $61.34. Digi International shares last traded at $62.30, with a volume of 1,118,035 shares trading hands.

Analyst Ratings Changes

DGII has been the topic of a number of research analyst reports. Roth Capital set a $90.00 price target on shares of Digi International and gave the company a "buy" rating in a research note on Thursday, August 6th. Piper Sandler boosted their price target on shares of Digi International from $63.00 to $76.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Stephens upped their price objective 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. Weiss Ratings raised shares of Digi International from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, October 16th. Finally, B. Riley Financial lifted their target price 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. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, Digi International has an average rating of "Moderate Buy" and a consensus price target of $82.40.

Digi International Stock Performance

The firm has a market cap of $2.36 billion, a PE ratio of 49.44 and a beta of 1.00. The firm has a 50-day moving average price of $73.27 and a two-hundred day moving average price of $63.43. The company has a quick ratio of 0.78, a current ratio of 1.13 and a debt-to-equity ratio of 0.16.

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

Institutional Investors Weigh In On Digi International

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Leuthold Group LLC increased its position in Digi International by 8.5% during the third quarter. Leuthold Group LLC now owns 59,199 shares of the technology company's stock worth $4,513,000 after purchasing an additional 4,629 shares during the last quarter. Fifth Third Wealth Advisors LLC purchased a new position in Digi International during the third quarter worth about $251,000. Sterling Capital Management LLC boosted its holdings in Digi International by 467.8% in the 3rd quarter. Sterling Capital Management LLC now owns 1,181 shares of the technology company's stock valued at $90,000 after purchasing an additional 973 shares during the last quarter. Nisa Investment Advisors LLC boosted its holdings in Digi International by 77.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 1,511 shares of the technology company's stock valued at $115,000 after purchasing an additional 661 shares during the last quarter. Finally, USA Financial Formulas acquired a new position in Digi International in the 3rd quarter valued at about $80,000. Institutional investors and hedge funds own 95.90% of the company's stock.

Digi International Company Profile

Digi International Inc NASDAQ: DGII provides Internet of Things (IoT) connectivity products and services that help businesses connect, monitor and manage devices and equipment remotely. Its solutions are used to support connected operations across industrial, transportation, energy, healthcare, retail and other commercial applications.

The company offers cellular routers, gateways, embedded systems, networking hardware and wireless modules. Digi also provides cloud-based device-management software and related services that enable customers to configure, monitor, secure and update connected devices throughout their operating lifecycles.

Digi serves customers internationally through direct sales, channel partners and distributors.

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