Digi International (NASDAQ:DGII) Shares Up 15.9% After Better-Than-Expected Earnings

Digi International Inc. (NASDAQ:DGII)’s share price traded up 15.9% during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $33.33 and last traded at $32.52. 134,293 shares were traded during mid-day trading, a decline of 37% from the average session volume of 211,787 shares. The stock had previously closed at $28.07.

The technology company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.49 by $0.02. The business had revenue of $104.50 million during the quarter, compared to analysts’ expectations 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 for the quarter was down 3.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.49 EPS.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Stephens restated an “overweight” rating and issued a $45.00 target price on shares of Digi International in a research note on Thursday, February 6th. Piper Sandler increased their price target on shares of Digi International from $26.00 to $30.00 and gave the stock a “neutral” rating in a research note on Thursday. Finally, StockNews.com lowered shares of Digi International from a “strong-buy” rating to a “buy” rating in a research note on Friday.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Sterling Capital Management LLC increased its position 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 acquiring an additional 1,025 shares in the last quarter. Lazard Asset Management LLC bought a new position in shares of Digi International during the fourth quarter valued at $45,000. KLP Kapitalforvaltning AS purchased a new stake in shares of Digi International during the fourth quarter valued at $196,000. Bearing Point Capital LLC bought a new stake in Digi International in the 4th quarter worth about $212,000. Finally, Pacer Advisors Inc. raised its position in Digi International by 110.2% in the 4th quarter. Pacer Advisors Inc. now owns 9,930 shares of the technology company’s stock worth $300,000 after buying an additional 5,207 shares during the last quarter. 95.90% of the stock is owned by hedge funds and other institutional investors.

Digi International Stock Up 2.3 %

The company’s 50 day simple moving average is $27.69 and its 200-day simple moving average is $30.30. The company has a current ratio of 1.61, a quick ratio of 1.06 and a debt-to-equity ratio of 0.16. The firm has a market cap of $1.21 billion, a P/E ratio of 34.13, a PEG ratio of 1.23 and a beta of 0.82.

Digi International Company Profile

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.