Digi International Inc. (NASDAQ: DGII) stock jumped 15.66% on Friday to $34.78 against a previous-day closing price of $30.07. With 1.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.22 million shares. During the session, the Communication Equipment company that operates in wider Technology sector, reached to the highest price of $35.15 whereas the lowest price it dropped to was $31.15. The 52-week range on DGII shows that it touched its highest point at $30.44 and its lowest point at $18.54 during that stretch. It currently has a 1-year price target of $32.20. Beta for the stock currently stands at 1.42.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DGII was up-trending over the past week, with a rise of 21.40%, but this was up by 45.46% over a month. Three-month performance surged to 76.91% while six-month performance rose 56.88%. The stock gained 68.02% in the past year, while it has gained 41.55% so far this year. A look at the trailing 12-month EPS for DGII yields 0.33 with Next year EPS estimates of 1.79. For the next quarter, that number is 0.37. This implies an EPS growth rate of 9.00% for this year and 16.88% for next year. EPS is expected to grow by 17.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -9.50%.
Float and Shares Shorts:
At present, 35.02 million DGII shares are outstanding with a float of 34.23 million shares on hand for trading. On Jul 14, 2022, short shares totaled 1.35 million, which was 3.85% higher than short shares on Jun 14, 2022. In addition to Mr. Ronald E. Konezny as the firm’s Pres, CEO & Director, Mr. James J. Loch serves as its Exec. VP, CFO & Treasurer.
Institutional Ownership:
Through their ownership of 90.25% of DGII’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.21% of DGII, in contrast to 56.52% held by mutual funds. Shares owned by individuals account for 32.62%. As the largest shareholder in DGII with 14.92% of the stake, BlackRock Fund Advisors holds 5,233,635 shares worth 5,233,635. A second-largest stockholder of DGII, Mairs & Power, Inc., holds 2,549,116 shares, controlling over 7.27% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in DGII, holding 2,375,756 shares or 6.77% stake. With a 7.14% stake in DGII, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 2,505,053 shares are owned by the mutual fund manager. The Fidelity VIP – Mid Cap Portfolio, which owns about 4.95% of DGII stock, is the second-largest Mutual Fund holder. It holds 1,737,001 shares valued at 42.07 million. Mairs & Power Growth Fund holds 3.70% of the stake in DGII, owning 1,296,333 shares worth 31.4 million.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DGII since 5 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DGII analysts setting a high price target of $36.00 and a low target of $30.00, the average target price over the next 12 months is $31.50. Based on these targets, DGII could surge 3.51% to reach the target high and fall by -13.74% to reach the target low. Reaching the average price target will result in a decline of -9.43% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DGII will report FY 2022 earnings on 11/17/2022. Analysts have provided yearly estimates in a range of $0.42 being high and $0.23 being low. For DGII, this leads to a yearly average estimate of $0.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Digi International Inc. surprised analysts by $0.03 when it reported $0.08 EPS against a consensus estimate of $0.05. The surprise factor in the prior quarter was -$0.07. Based on analyst estimates, the high estimate for the next quarter is $0.12 and the low estimate is $0.07. The average estimate for the next quarter is thus $0.10.
Summary of Insider Activity:
Insiders traded DGII stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 30,000 shares were bought while 30,631 shares were sold. The number of buy transactions has increased to 32 while that of sell transactions has risen to 36 over the past year. The total number of shares bought during that period was 1,066,485 while 779,330 shares were sold.
