Digi International Inc. (NASDAQ:DGII) Riding the Lightening: Where is it Headed Now?

Traders may be using technical analysis to help spot ideal entry and exit points. One idea behind technical analysis is that historical price movement trends have the ability to repeat themselves. Technical analysis involves the use of chart patterns to examine market movements and to help define trends. Trends in the stock market are not always easy to spot. Many chartists will strive to determine whether the trend is up, down, or sideways. After defining a trend, the technical analyst may look to see what type of timeframe the trend encompasses. Some traders will look to identify whether the trend is major or long-term, short-term, or intermediate. Being able to decipher what the data is saying may assist the trader with finding potential entry and exit points on a particular trade. There are many different indicators that can be employed when undertaking technical analysis. Many traders will do numerous chart studies to find out which indicator or indicators tend to project the most relevant trading assistance. Learning how to spot these trends might help the trader develop specific charting skills that will hopefully lead to future market success.

As we close in on the end of the calendar year, investors may be trying to visualize potential trades for the New Year. There are many professionals that believe that there is still plenty of room for stocks to run even at current levels. Preparing the game plan for the next few quarters may give the investor some new ideas. Staying focused and maintaining discipline may help guide the investor to unchartered territory in the coming months. Tracking market events from multiple angles may also help provide some enhanced perspective.  

Digi International Inc. (NASDAQ:DGII), of the Technology sector recently touched $14.52 based on a recent trade, indicating movement of 2.76%. Analysts are predicting earnings per share growth of -55.20% for the current year. The earnings per share growth over the next five years are expected to be 17.00%. Digi International Inc. has had earnings per share growth of -6.90% over the past five years. 

Currently the return on equity is 3.30% and its debt to equity is 0.00. Digi International Inc. has a total market cap of $407.00, a gross margin of 46.80% while the profit margin is 4.40% and the ROI is 1.20%.


The stats on Digi International Inc. (NASDAQ:DGII) are currently as follows. The weekly performance is 11.78%, and the quarterly performance is at 26.37%. The monthly performance is 5.52% and the yearly performance is 5.52%. The performance for Year to Date (YTD) is 43.90%.

Digi International Inc. has posted a trailing 12 months earnings per share of $0.40 and the earnings per share growth for this year is expected to be -55.20%. The ROI is 1.20% and the return on equity for Digi International Inc. stated earlier, is currently at 3.30% .The return on assets (ROA) for Digi International Inc. is 3.00%. 

Earnings per share (EPS) the amount of income that “belongs” to each share of common stock. This is a valuable tool that investors use to determine the value and projected value of a stock.  Earnings per share is generally reported in annualized form from the most recent fiscal year. To determine the value, the average number of shares outstanding is usually calculated by averaging the number of shares at the beginning of the fiscal period and the number of shares at the end of the period. 


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The technical stats for Digi International Inc. are as follows. Digi International Inc. (NASDAQ:DGII) is trading 56.47% away from the stock’s 52-week low and 0.55% off of the 52-week high. Current levels place the company 10.96% away from it’s 20-day simple moving average. The average volume stands around 153478. Trading volume is a hugely important consideration for any investor.  By watching how many shares are trading hands and looking for any changes in that activity, trading opportunities can be spotted along with a deeper understanding of the reliability of other indicators on the stock.  A significant increase in trading volume means that more than double the average amount of stocks are moving.  When volume is decreased significantly, it may indicate there is an issue that shareholders should watch out for.  It’s also important to take into consideration how long the unusual volume sustains for.  If it’s only the one trading day, it can be dismissed as an anomaly.

The current stock levels place it 17.96% away from the 200 day moving average. Digi International Inc. has a beta of 1.58 and the weekly and monthly volatility stands at 4.10% and 3.16% respectively. The simple moving average is the most common method used to calculate the moving average of prices.  It takes the sum of all of the past closing prices over a specific time period and divides the result by the number of prices used in the calculation.  Increasing the number of time periods in the calculation is an effective way to ascertain the strength of the long-term trend and/or the likelihood that it might reverse.  Some argue that this type of average is not necessarily useful because each data point in the series has the exact same impact on the result no matter where it occurs in the sequence.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. 

Price Earnings Ratio

The price/earnings ratio (P/E) for Digi International Inc. is 36.39 and the forward P/E ratio stands at 28.81. The price to sales growth is 1.60. The price/earnings ratio (P/E) is a market prospect ratio which calculates the value of a stock relative to its earnings. On other words, the P/E ratio is and indicator of what investors are will to pay for a stock relative to its earnings.  A firm with a high P/E ratio typically indicates that investors are willing to pay a premium for the stock and higher performance in future quarters would be anticipated. Going a step further we can also look at the PEG ratio of a company.  A stock’s price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value, because the investor would be paying less for each unit of earnings growth.

Investors have plenty to keep up with when following day to day business news. Sifting through the headlines can be cumbersome, and figuring out which data to pay attention to can be very time consuming. News events can play a big role in the investing world. Big news has the ability to push a stock up or down. Sometimes the move may be justified, and other times it may not be. Disciplined investors are usually skilled at determining which information to focus on. Overreactions can play a large role in determining the long-term health of a portfolio. Investors often have to understand that a great stock can see periods of decline just as a weak stock may experience periods of strength. Putting in the research hours can help the investor prepare for opportunities when they spot unusual action in the stock market.

Disclaimer: The views of the author are in no way suggesting whether or not to buy a stock.  Data is provided by Yahoo Finance.