Is Digi International (DGII) a Strong Investment Choice?

Conestoga Capital Advisors, an asset management company, released its “Conestoga Micro Cap Growth Fund” third-quarter investor letter. A copy of the same can be downloaded here. In the third quarter, the Micro-Cap composite declined 0.67% compared to a 2.14% return for the Russell Microcap Growth Index. The negative stock selection and underweight exposure to the top-performing Health Care sector resulted in the fund’s underperformance in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Conestoga Capital Advisors highlighted stocks like Digi International Inc. (NASDAQ:DGII) in its Q3 2022 investor letter. Headquartered in Hopkins, Minnesota, Digi International Inc. (NASDAQ:DGII) is an internet of things products and services provider. On December 15, 2022, Digi International Inc. (NASDAQ:DGII) stock closed at $39.16 per share. One-month return of Digi International Inc. (NASDAQ:DGII) was -5.71%, and its shares lost 63.37% of their value over the last 52 weeks. Digi International Inc. (NASDAQ:DGII) has a market capitalization of $1.397 billion.

Conestoga Capital Advisors made the following comment about Digi International Inc. (NASDAQ:DGII) in its Q3 2022 investor letter:

Digi International Inc. (NASDAQ:DGII) provides businesses with mission-critical Internet of Things (IoT) connectivity products, services, and solutions. DGII reported impressive June quarter results despite continued supply chain challenges. The company achieved several records in the quarter and beat consensus estimates. Notably, DGII surpassed $100 million in revenue and reported $92 million in annual recurring revenue. The company benefited from strength in the IoT Product and Services segment. Additionally, gross margin saw a sequential increase of 60 bps during the quarter.”

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Digi International Inc. (NASDAQ:DGII) is not on our 30 Most Popular Stocks Among Hedge Funds list. As per our database, 14 hedge fund portfolios held Digi International Inc. (NASDAQ:DGII) at the end of the third quarter, which was 14 in the previous quarter.

We discussed Digi International Inc. (NASDAQ:DGII) in another article and shared the best performing tech stocks of 2022. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.