Digi International (NASDAQ:DGII) Trading Up 15.9% Following Strong Earnings

Digi International Inc. (NASDAQ:DGII) shares were up 15.9% during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $33.33 and last traded at $32.52. Approximately 134,293 shares changed hands during trading, a decline of 37% from the average daily volume of 211,787 shares. The stock had previously closed at $28.07.

The technology company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.49 by $0.02. The company had revenue of $104.50 million during the quarter, compared to the consensus estimate of $104.08 million. Digi International had a net margin of 8.45% and a return on equity of 11.16%. The firm’s revenue was down 3.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.49 EPS.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on DGII. StockNews.com upgraded shares of Digi International from a “buy” rating to a “strong-buy” rating in a research report on Friday, April 25th. Piper Sandler raised their target price on shares of Digi International from $26.00 to $30.00 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Stephens restated an “overweight” rating and set a $45.00 price target on shares of Digi International in a research report on Thursday, February 6th.

Institutional Trading of Digi International

Institutional investors and hedge funds have recently bought and sold shares of the company. Sterling Capital Management LLC lifted its holdings in shares of Digi International by 868.6% during the fourth quarter. Sterling Capital Management LLC now owns 1,143 shares of the technology company’s stock valued at $35,000 after purchasing an additional 1,025 shares in the last quarter. Lazard Asset Management LLC bought a new position in Digi International in the fourth quarter worth approximately $45,000. KLP Kapitalforvaltning AS purchased a new position in Digi International during the fourth quarter valued at $196,000. Bearing Point Capital LLC purchased a new position in shares of Digi International during the 4th quarter valued at about $212,000. Finally, Pacer Advisors Inc. boosted its position in shares of Digi International by 110.2% in the fourth quarter. Pacer Advisors Inc. now owns 9,930 shares of the technology company’s stock worth $300,000 after purchasing an additional 5,207 shares during the period. 95.90% of the stock is currently owned by institutional investors.

Digi International Price Performance

The stock has a 50 day simple moving average of $27.62 and a 200-day simple moving average of $30.28. The firm has a market cap of $1.19 billion, a PE ratio of 33.51, a price-to-earnings-growth ratio of 1.23 and a beta of 0.82. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.16.

About Digi International

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