GuruFocus - Digi International Inc (NASDAQ:DGII), a leading provider of business and mission-critical Internet of Things (IoT) products, services, and solutions, witnessed a notable insider transaction recently. 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 $27.8 each, placing the total value of the transaction at approximately $200,382.40. This sale has adjusted the insider's stake in the company significantly.
Over the past year, the insider transaction history at Digi International Inc shows a trend of more sales than purchases among insiders. Specifically, there have been zero insider buys and three insider sells in the last twelve months.
On the valuation front, Digi International Inc currently holds a market cap of $1.057 billion. The stock's price-earnings ratio stands at 63.11, which is significantly higher than both the industry median of 21.48 and the companys historical median. This high ratio indicates a premium valuation compared to industry standards.
The GF Value, an intrinsic value estimate from GuruFocus, suggests a value of $29.15 per share for Digi International Inc, making the stock fairly valued with a price-to-GF-Value ratio of 0.95 at the current trading price of $27.8.
The GF Value is calculated considering historical trading multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
This recent insider sale by Director Hatem Naguib might draw investor attention as they evaluate the stock's current valuation and future prospects in the evolving IoT market.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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