Digi International (NASDAQ:DGII) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research lowered shares of Digi International (NASDAQ:DGII) from a buy rating to a hold rating in a research note published on Friday, Zacks.com reports.

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 analysts have also recently commented on the company. BidaskClub cut Digi International from a buy rating to a hold rating in a research note on Tuesday, August 27th. TheStreet upgraded Digi International from a c+ rating to a b- rating in a research note on Monday, July 8th. Finally, ValuEngine cut Digi International from a buy rating to a hold rating in a research note on Monday, October 7th. Three equities research analysts have rated the stock with a hold rating and two have given a buy rating to the stock. Digi International currently has an average rating of Hold and an average target price of $17.67.

Digi International stock traded up $0.23 during mid-day trading on Friday, hitting $13.62. The company’s stock had a trading volume of 57,458 shares, compared to its average volume of 89,192. The firm has a market capitalization of $383.27 million, a PE ratio of 272.40, a price-to-earnings-growth ratio of 2.04 and a beta of 1.59. Digi International has a 1 year low of $9.28 and a 1 year high of $14.71. The stock’s fifty day moving average is $13.41 and its two-hundred day moving average is $12.69.

Digi International (NASDAQ:DGII) last issued its quarterly earnings data on Thursday, August 8th. The technology company reported $0.05 earnings per share for the quarter, topping the 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 company had revenue of $61.17 million during the quarter, compared to analyst estimates of $63.30 million. As a group, analysts predict that Digi International will post 0.33 earnings per share for the current fiscal year.

In other Digi International news, VP Terrence G. Schneider sold 2,636 shares of the company’s stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $13.61, for a total transaction of $35,875.96. Following the transaction, the vice president now directly owns 20,666 shares in the company, valued at $281,264.26. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.80% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently made changes to their positions in DGII. Strs Ohio raised its stake in shares of Digi International by 7.7% in the second quarter. Strs Ohio now owns 16,700 shares of the technology company’s stock valued at $211,000 after acquiring an additional 1,200 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. raised its stake 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 valued at $275,000 after acquiring an additional 5,325 shares in the last quarter. Russell Investments Group Ltd. raised its stake 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 valued at $423,000 after acquiring an additional 1,600 shares in the last quarter. Arizona State Retirement System raised its stake in shares of Digi International by 2.0% in the second quarter. Arizona State Retirement System now owns 43,525 shares of the technology company’s stock valued at $552,000 after acquiring an additional 833 shares in the last quarter. Finally, Municipal Employees Retirement System of Michigan raised 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 valued at $641,000 after acquiring an additional 14,300 shares in the last quarter. Institutional investors and hedge funds 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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