Digi International Inc (DGII) Receives a Buy from Canaccord Genuity

By Ryan Adsit

Canaccord Genuity analyst Michael Walkley maintained a Buy rating on Digi International Inc (NASDAQ: DGII) today and set a price target of $18. The company’s shares opened today at $13.25.

Walkley observed:

“We hosted a presentation and investor meetings with CEO Ron Konezny and CFO Growth Conference. Management highlighted its transformation of IoT hardware provider with 5K SKUs, to a focused IoT solutions provider with reduced SKU counts and an end-to-end cold chain monitoring platform. We believe Digi will post strong double- digit growth for its IoT solutions business over the next several years and achieve its 3- to 5-year target of $50M to $100M in annual recurring revenue. As the recurring revenue solutions business increases in the total revenue mix and drives margin accretion longer term, we anticipate the multiple will expand consistent with other IoT coverage companies that have a stronger mix of recurring revenue.”

According to TipRanks.com, Walkley is a top 100 analyst with an average return of 17.0% and a 62.6% success rate. Walkley covers the Consumer Goods sector, focusing on stocks such as Sequans Communications S A, Adesto Technologies Corp, and BlackBerry Limited.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Digi International Inc with a $16.67 average price target, representing a 25.8% upside. In a report issued on July 27, Lake Street also reiterated a Buy rating on the stock with a $16 price target.


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Based on Digi International Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $2.62 million. In comparison, last year the company had a net profit of $1.34 million.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Jon Nyland, the VP, Manufacturing Operations of DGII sold 10,000 shares for a total of $134,180.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Digi International, Inc. engages in the provision of business and mission-critical and Internet of Things (IoT) connectivity products and services. It operates through M2M and Solutions segments. The M2M segment consists primarily of distinct communications products and communication product development services.