Digi International (NASDAQ:DGII) Shares Gap Up on Better-Than-Expected Earnings

Digi International Inc. (NASDAQ:DGIIGet Rating) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $30.07, but opened at $31.74. Digi International shares last traded at $32.96, with a volume of 3,330 shares trading hands.

The technology company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.12. The company had revenue of $104.00 million for the quarter, compared to analyst estimates of $96.12 million. Digi International had a net margin of 3.53% and a return on equity of 6.82%. Digi International’s revenue was up 31.5% on a year-over-year basis. During the same period in the previous year, the business posted $0.09 EPS.

Wall Street Analyst Weigh In

Several brokerages have recently commented on DGII. Stephens began coverage on shares of Digi International in a report on Wednesday, June 1st. They issued an “overweight” rating and a $36.00 price objective on the stock. Piper Sandler increased their price objective on shares of Digi International from $30.00 to $45.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Canaccord Genuity Group increased their price objective on shares of Digi International from $30.00 to $41.00 and gave the stock a “buy” rating in a research report on Friday. One research analyst has rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $35.50.

Insider Buying and Selling at Digi International

In other Digi International news, VP Terrence G. Schneider sold 12,631 shares of the firm’s stock in a transaction that occurred on Monday, May 16th. The shares were sold at an average price of $21.64, for a total value of $273,334.84. Following the completion of the transaction, the vice president now owns 30,314 shares of the company’s stock, valued at approximately $655,994.96. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In other Digi International news, VP Tracy L. Roberts sold 11,250 shares of the firm’s stock in a transaction that occurred on Monday, June 6th. The shares were sold at an average price of $25.46, for a total value of $286,425.00. Following the completion of the transaction, the vice president now owns 53,957 shares of the company’s stock, valued at approximately $1,373,745.22. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Terrence G. Schneider sold 12,631 shares of the firm’s stock in a transaction that occurred on Monday, May 16th. The shares were sold at an average price of $21.64, for a total transaction of $273,334.84. Following the completion of the transaction, the vice president now directly owns 30,314 shares of the company’s stock, valued at approximately $655,994.96. The disclosure for this sale can be found here. 3.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Digi International

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Fort Washington Investment Advisors Inc. OH raised its holdings in shares of Digi International by 0.5% in the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 555,805 shares of the technology company’s stock valued at $11,961,000 after purchasing an additional 2,750 shares in the last quarter. Wasatch Advisors Inc. raised its holdings in shares of Digi International by 35.0% in the 4th quarter. Wasatch Advisors Inc. now owns 493,117 shares of the technology company’s stock valued at $12,116,000 after purchasing an additional 127,725 shares in the last quarter. Essex Investment Management Co. LLC raised its holdings in shares of Digi International by 2.1% in the 1st quarter. Essex Investment Management Co. LLC now owns 178,749 shares of the technology company’s stock valued at $3,847,000 after purchasing an additional 3,618 shares in the last quarter. Rhumbline Advisers raised its holdings in shares of Digi International by 2.9% in the 1st quarter. Rhumbline Advisers now owns 97,635 shares of the technology company’s stock valued at $2,101,000 after purchasing an additional 2,711 shares in the last quarter. Finally, Mutual of America Capital Management LLC raised its holdings in shares of Digi International by 1,268.6% in the 1st quarter. Mutual of America Capital Management LLC now owns 63,776 shares of the technology company’s stock valued at $1,372,000 after purchasing an additional 59,116 shares in the last quarter. 86.21% of the stock is currently owned by institutional investors and hedge funds.

Digi International Price Performance

The stock’s fifty day moving average price is $25.17 and its two-hundred day moving average price is $22.20. The firm has a market capitalization of $1.20 billion, a price-to-earnings ratio of 94.75, a price-to-earnings-growth ratio of 1.57 and a beta of 1.41. The company has a current ratio of 1.79, a quick ratio of 1.29 and a debt-to-equity ratio of 0.54.

Digi International Company Profile

(Get Rating)

Digi International Inc provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States 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.

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