Digi International, Inc is currently under the scrutiny of nine equity research analysts who have assigned a consensus rating of “Moderate Buy” to its shares. Bloomberg Ratings has reported that one analyst issued a recommendation to hold onto the stock while five recommended buying it. The company’s performance in the past year has resulted in an average price target of $47.00 among brokers who have issued ratings on Digi International, Inc, thereby demonstrating their confidence in its future prospects.
The firm specializes in offering IoT connectivity products and solutions, which form two segments – the IoT Products and Services segment and the IoT Solutions segment. The former provides original equipment manufacturers (OEMs), enterprise clientele and government customers with products and services related to secure IoT connectivity solutions. Meanwhile, the latter provides customized software design & development, hardware design & development, and system integration services for businesses involved in digital transformations.
Notably, the chief financial officer (CFO) James J. Loch sold 7k shares of Digi International’s stock at an average price of $33.97 in March 2021, resulting in proceeds worth $237,790. Following this exit transaction, the Chief financial officer now owns 102k shares valued at approximately $3.47M; thus retaining a significant interest in Digi International’s performance without any inclination towards selling.
Additionally, CEO Ronald Konezny also sold 30k shares of DIGI international on March 2nd for an average price of $33.79; holding around USD 21 million worth of stocks as part of his compensation package; Mr Konezny too seems confident about DIGI International’s long-term growth prospects.
In conclusion: Despite two significant insider sales transactions taking place recently and corporate insiders owning only around four per cent of Digi International’s stock,nine experienced equity research analysts’ moderate buy consensus rating lays testament to growing confidence among investors as well as shareholders’ trust in Digi International’s long-term growth prospects.
Mixed Analyst Ratings and Rising Institutional Support for Digi International
Digi International, a technology company specializing in providing internet of things solutions, has recently received various ratings and reviews from equities research analysts. Cantor Fitzgerald, for example, reissued an “overweight” rating and issued a $48.00 price objective on shares of Digi International on Friday, February 3rd. This was soon followed by Westpark Capital initiating coverage of the company on Thursday, May 18th with a “buy” rating. However, in a more recent report issued on Friday, StockNews.com cut shares of Digi International from a “buy” rating to a “hold” rating.
Despite mixed verdicts from analysts, Digi International’s stock opened at $34.76 on Friday with a market cap of $1.25 billion and outperformed the S&P 500 index as it increased by a whopping 47% over the past year.
In addition to receiving attention from research analysts, the company also saw increasing interest from hedge funds who have purchased stakes in their stock over time. New York State Common Retirement Fund increased its stake by 6.9% during Q3 of last year and now owns 24,626 shares in Digi International valued at approximately $851,000 after purchasing an additional 1,600 shares last quarter.
Altshuler Shaham Ltd acquired new stakes worth $34,000 during Q3 while Russell Investments Group Ltd bought shares worth $2.276 million for their portfolio around the same time period.
Although there is no clear consensus among analysts regarding whether or not to invest in this company yet; institutional investors and hedge funds are clearly bullish about it as evidenced by their steady purchase record in recent times.
Overall, despite mixed opinions from multiple sources within the investment industry concerning the potential of Digi International’s future performances one thing appears certain; regardless of market fluctuation conditions this IoT-focused technology firm is well positioned in terms of investor support, fund acquisition, and overall market interest.
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