Digi International (NASDAQ:DGII) Raised to Buy at Zacks Investment Research

Digi International (NASDAQ:DGII) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday, Zacks.com reports. The brokerage currently has a $15.00 target price on the technology company’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 12.02% from the company’s current price.

According to Zacks, “Digi International Inc. is a leading global provider of business and mission-critical Internet of Things (IoT) products and services. They help their customers create next-generation connected products and deploy and manage critical communications infrastructures in demanding environments with high levels of security, relentless reliability and bulletproof performance. Digi International, Inc. (Digi) was formed in 1985-long before anyone coined the term the Internet of Things. They always focused on connecting things, starting with intelligent multiport serial boards for PCs. As wireless data technologies evolved, they invented right along with it, expanding their product lines with RF modules, gateways, and cellular routers to build critical communications infrastructures, plus embedded wireless system on module (SoM) and single-board computer (SBC) offerings for makers of next generation connected products. “

A number of other research firms also recently weighed in on DGII. ValuEngine downgraded Digi International from a “buy” rating to a “hold” rating in a research report on Monday. BidaskClub downgraded Digi International from a “buy” rating to a “hold” rating in a research report on Tuesday, August 27th. Finally, TheStreet upgraded Digi International from a “c+” rating to a “b-” rating in a research report on Monday, July 8th. Two research analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $17.67.

NASDAQ DGII traded up $0.09 during trading hours on Thursday, reaching $13.39. 59,200 shares of the stock traded hands, compared to its average volume of 140,167. The stock has a 50 day simple moving average of $13.40 and a two-hundred day simple moving average of $12.69. Digi International has a 1 year low of $9.28 and a 1 year high of $14.71. The company has a market cap of $383.22 million, a price-to-earnings ratio of 267.80, a price-to-earnings-growth ratio of 2.09 and a beta of 1.59.

Digi International (NASDAQ:DGII) last released its quarterly earnings results on Thursday, August 8th. The technology company reported $0.05 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.04 by $0.01. Digi International had a return on equity of 2.15% and a net margin of 4.43%. The business had revenue of $61.17 million for the quarter, compared to the consensus estimate of $63.30 million. On average, equities research analysts expect that Digi International will post 0.33 earnings per share for the current fiscal year.

In other news, VP Terrence G. Schneider sold 2,636 shares of Digi International stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $13.61, for a total value of $35,875.96. Following the transaction, the vice president now owns 20,666 shares in the company, valued at $281,264.26. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 6.80% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. increased its holdings in shares of Digi International by 5.0% in the second quarter. Russell Investments Group Ltd. now owns 33,360 shares of the technology company’s stock worth $423,000 after buying an additional 1,600 shares during the period. Connor Clark & Lunn Investment Management Ltd. increased its holdings in shares of Digi International by 32.6% in the second quarter. Connor Clark & Lunn Investment Management Ltd. now owns 21,676 shares of the technology company’s stock worth $275,000 after buying an additional 5,325 shares during the period. Teton Advisors Inc. increased its holdings in shares of Digi International by 36.0% in the second quarter. Teton Advisors Inc. now owns 158,620 shares of the technology company’s stock worth $2,011,000 after buying an additional 42,000 shares during the period. Gamco Investors INC. ET AL grew its stake in shares of Digi International by 8.2% in the second quarter. Gamco Investors INC. ET AL now owns 79,140 shares of the technology company’s stock worth $1,003,000 after purchasing an additional 6,000 shares during the last quarter. Finally, Municipal Employees Retirement System of Michigan grew its stake in shares of Digi International by 39.5% in the second quarter. Municipal Employees Retirement System of Michigan now owns 50,530 shares of the technology company’s stock worth $641,000 after purchasing an additional 14,300 shares during the last quarter. Hedge funds and other institutional investors own 81.38% of the company’s stock.

About Digi International

Digi International Inc provides Internet of Things connectivity products, services, and solutions in North America, Europe, the Middle East, Africa, Asia, and Latin America. The company operates in two segments, IoT Products & Services and IoT Solutions. It offers cellular routers that provide connectivity for devices over a cellular data network; cellular gateway products that enable devices or groups of devices to be networked in locations where there is no existing network or where access to a network is prohibited; radio frequency products that utilize a range of wireless protocols for PC-to-device or device-to-device connectivity; and Connect, Rabbit, and ARM-based embedded systems on module and single board computers for medical, transportation, and industrial device manufacturers.

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