Digi International (NASDAQ:DGII) Stock Breaks Below 200 Day Moving Average – Time to Sell?

Digi International Inc. (NASDAQ:DGII) shares passed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $63.43 and traded as low as $61.34. Digi International shares last traded at $62.30, with a volume of 1,118,035 shares changing hands.

Wall Street Analyst Weigh In

DGII has been the subject of several analyst reports. Weiss Ratings upgraded Digi International from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, October 16th. Stephens lifted their target price on Digi International from $75.00 to $85.00 and gave the company an “overweight” rating in a research report on Thursday, August 6th. B. Riley Financial upped their price target on Digi International from $78.00 to $86.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Zacks Research cut Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Finally, Piper Sandler increased their price target on Digi International from $63.00 to $76.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Digi International currently has a consensus rating of “Moderate Buy” and an average target price of $82.40.

Digi International Price Performance

The company has a debt-to-equity ratio of 0.16, a current ratio of 1.13 and a quick ratio of 0.78. The firm has a market capitalization of $2.36 billion, a price-to-earnings ratio of 49.44 and a beta of 1.00. The stock has a 50 day moving average price of $73.27 and a two-hundred day moving average price of $63.43.

Digi International (NASDAQ:DGII) last posted its earnings results on Wednesday, August 5th. The technology company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.09. Digi International had a return on equity of 12.16% and a net margin of 9.63%. The firm had revenue of $138.67 million for the quarter, compared to analyst estimates of $132.57 million. During the same quarter in the prior year, the company earned $0.53 EPS. Digi International’s revenue was up 29.0% on a year-over-year basis. As a group, analysts expect that Digi International Inc. will post 2.31 EPS for the current year.

Institutional Trading of Digi International

Hedge funds have recently made changes to their positions in the business. Leuthold Group LLC boosted its stake in shares of Digi International by 8.5% in the third quarter. Leuthold Group LLC now owns 59,199 shares of the technology company’s stock valued at $4,513,000 after purchasing an additional 4,629 shares during the period. Fifth Third Wealth Advisors LLC acquired a new position in shares of Digi International in the third quarter valued at approximately $251,000. Sterling Capital Management LLC grew its holdings in shares of Digi International by 467.8% in the third quarter. Sterling Capital Management LLC now owns 1,181 shares of the technology company’s stock valued at $90,000 after purchasing an additional 973 shares in the last quarter. Nisa Investment Advisors LLC increased its stake in Digi International by 77.8% during the 3rd quarter. Nisa Investment Advisors LLC now owns 1,511 shares of the technology company’s stock worth $115,000 after buying an additional 661 shares during the period. Finally, USA Financial Formulas purchased a new stake in Digi International during the 3rd quarter worth approximately $80,000. Institutional investors and hedge funds own 95.90% of the company’s stock.

Digi International Company Profile

Digi International Inc (NASDAQ: DGII) provides Internet of Things (IoT) connectivity products and services that help businesses connect, monitor and manage devices and equipment remotely. Its solutions are used to support connected operations across industrial, transportation, energy, healthcare, retail and other commercial applications.

The company offers cellular routers, gateways, embedded systems, networking hardware and wireless modules. Digi also provides cloud-based device-management software and related services that enable customers to configure, monitor, secure and update connected devices throughout their operating lifecycles.

Digi serves customers internationally through direct sales, channel partners and distributors.