Digi International Inc (NASDAQ:DGII), a leading provider of business and mission-critical Internet of Things (IoT) products, services and solutions, recently witnessed a notable insider transaction. Director Hatem Naguib sold 7,208 shares of the company on August 14, 2024. The transaction was documented in an SEC filing. Following this sale, the insider now owns 32,823 shares of Digi International Inc.
The shares were sold at a price of $27.80 per share, bringing the total value of the transaction to approximately $200,382.40. This sale significantly adjusted the insider’s stake in the company.
Over the past year, the insider transaction history at Digi International Inc. showed that there were more sales than purchases among insiders. Specifically, there were zero insider purchases and three insider sales in the last twelve months.
In terms of valuation, Digi International Inc. currently has a market capitalization of $1.057 billion. The stock’s price-to-earnings ratio is 63.11, which is well above the industry median of 21.48 and the company’s historical median. This high ratio indicates a premium valuation compared to industry standards.
GF Value, an estimate of intrinsic value from GuruFocus, suggests a value of $29.15 per share for Digi International Inc., making the stock fairly valued at a Price to GF Value ratio of 0.95 at the current trading price of $27.8.
The GF value is calculated by taking into account historical trading multiples such as price-to-earnings ratio, price-to-sales ratio, price-to-book ratio and price-to-free cash flow, along with a GuruFocus adjustment factor based on past earnings and growth as well as Morningstar analysts’ views on future business performance.
This recent insider sale by director Hatem Naguib could attract the attention of investors assessing the stock’s current valuation and future prospects in the evolving IoT market.
This article created by GuruFocus is intended to provide general insights and does not constitute tailored financial advice. Our commentary is based on historical data and analyst forecasts, uses an unbiased methodology and is not intended to serve as specific investment advice. It does not contain a recommendation to buy or sell any stock and does not take into account any individual investment objectives or financial circumstances. Our goal is to provide long-term, fundamental, data-driven analysis. Note that our analysis may not include the most recent, price-sensitive company announcements or qualitative information. GuruFocus does not hold a position in any stocks mentioned here.
This article first appeared on GuruFocus.
