Zacks Research Downgrades Digi International (NASDAQ:DGII) to Hold

Digi International (NASDAQ:DGII) was downgraded by analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Monday,Zacks.com reports.

A number of other brokerages have also weighed in on DGII. Stephens lifted their price objective on Digi International from $65.00 to $75.00 and gave the company an “overweight” rating in a report on Tuesday, May 12th. Roth Capital reissued a “buy” rating and set a $70.00 target price on shares of Digi International in a research note on Thursday, May 7th. Weiss Ratings raised Digi International from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday. Craig Hallum lifted their price target on Digi International from $50.00 to $75.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Piper Sandler upped their price objective on Digi International from $46.00 to $63.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $66.20.

Digi International Stock Up 2.5%

Shares of NASDAQ:DGII opened at $72.14 on Monday. The company has a market cap of $2.72 billion, a price-to-earnings ratio of 63.84 and a beta of 0.97. The firm’s 50-day simple moving average is $68.48 and its 200-day simple moving average is $57.65. The company has a quick ratio of 0.77, a current ratio of 1.11 and a debt-to-equity ratio of 0.21. Digi International has a fifty-two week low of $30.69 and a fifty-two week high of $76.41.

Digi International (NASDAQ:DGII) last posted its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.58 by $0.04. The firm had revenue of $130.74 million during the quarter, compared to analysts’ expectations of $125.03 million. Digi International had a net margin of 9.10% and a return on equity of 11.28%. The firm’s revenue for the quarter was up 25.1% on a year-over-year basis. During the same period in the prior year, the company posted $0.51 earnings per share. As a group, equities research analysts predict that Digi International will post 2.11 earnings per share for the current year.

Insider Activity at Digi International

In other news, VP Terrence G. Schneider sold 14,182 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $65.61, for a total transaction of $930,481.02. Following the sale, the vice president owned 26,759 shares of the company’s stock, valued at $1,755,657.99. The trade was a 34.64% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO James J. Loch sold 100,000 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $69.44, for a total value of $6,944,000.00. Following the completion of the sale, the chief financial officer owned 167,589 shares in the company, valued at approximately $11,637,380.16. This represents a 37.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 121,008 shares of company stock valued at $8,320,222. 3.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Digi International

Hedge funds and other institutional investors have recently bought and sold shares of the company. USA Financial Formulas boosted its position in Digi International by 109.3% during the first quarter. USA Financial Formulas now owns 946 shares of the technology company’s stock worth $46,000 after purchasing an additional 494 shares in the last quarter. Lazard Asset Management LLC increased its position in shares of Digi International by 25.1% in the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock valued at $58,000 after buying an additional 339 shares in the last quarter. Russell Investments Group Ltd. increased its position in shares of Digi International by 1,530.9% in the third quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company’s stock valued at $123,000 after buying an additional 3,169 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Digi International by 17.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,576 shares of the technology company’s stock worth $193,000 after buying an additional 374 shares during the last quarter. Finally, FourThought Financial Partners LLC acquired a new position in shares of Digi International during the 4th quarter worth $204,000. 95.90% of the stock is owned by institutional investors and hedge funds.

About Digi International

Digi International Inc is a provider of Internet of Things (IoT) connectivity products and services designed to link devices to networks and applications securely. The company develops a broad range of networking hardware, including cellular and Ethernet routers, gateways, embedded modules and adaptors, as well as accessories and antennas. Digi’s solutions enable businesses to deploy remote monitoring, control and automation systems across diverse industries such as transportation, utilities, healthcare, retail and industrial manufacturing.

In addition to its physical devices, Digi offers cloud-based management software and professional services that simplify device configuration, monitoring and over-the-air updates.