Digi International Inc. (NASDAQ:DGII) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Digi International, with five buy ratings and two holds. The average 12-month price target is $82.40, compared with the stock’s reported opening price of $68.77.
• Digi reported a strong quarterly performance, posting $0.75 EPS versus the $0.66 consensus estimate and revenue of $138.67 million versus $132.57 million expected. Revenue rose 29% year over year.
• Institutional investors hold approximately 95.9% of Digi’s shares, with several major funds increasing their positions during the second and third quarters.

Shares of Digi International Inc. (NASDAQ:DGII - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the seven analysts that are presently covering the company, MarketBeat.com reports. Two analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 12-month price target among analysts that have covered the stock in the last year is $82.40.

DGII has been the topic of several research reports. Piper Sandler upped their price objective on Digi International from $63.00 to $76.00 and gave the company a "neutral" rating in a research note on Thursday, August 6th. Roth Capital set a $90.00 price target on Digi International and gave the company a "buy" rating in a report on Thursday, August 6th. B. Riley Financial boosted their price target on Digi International from $78.00 to $86.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Weiss Ratings upgraded Digi International from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, August 25th. Finally, Zacks Research downgraded shares of Digi International from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd.

Digi International Stock Down 0.2%

DGII stock opened at $68.77 on Friday. The company has a current ratio of 1.13, a quick ratio of 0.78 and a debt-to-equity ratio of 0.16. The firm has a 50 day simple moving average of $72.46 and a 200-day simple moving average of $63.50. The company has a market capitalization of $2.61 billion, a P/E ratio of 54.58 and a beta of 0.97. Digi International has a twelve month low of $34.24 and a twelve month high of $86.84.

Digi International (NASDAQ:DGII - Get Free Report) last issued its earnings results on Wednesday, August 5th. The technology company reported $0.75 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.66 by $0.09. The business had revenue of $138.67 million for the quarter, compared to analyst estimates of $132.57 million. Digi International had a net margin of 9.63% and a return on equity of 12.16%. The company's revenue for the quarter was up 29.0% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.53 EPS. Digi International has set its Q4 2026 guidance at 0.750-0.780 EPS. On average, equities research analysts predict that Digi International will post 2.31 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of DGII. Ameriprise Financial Inc. raised its stake in Digi International by 7.7% during the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company's stock worth $22,736,000 after acquiring an additional 46,659 shares during the period. Lazard Asset Management LLC grew its holdings in shares of Digi International by 25.1% during the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company's stock valued at $58,000 after purchasing an additional 339 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of Digi International by 1,530.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company's stock worth $123,000 after purchasing an additional 3,169 shares during the period. BNP Paribas Financial Markets raised its position in shares of Digi International by 48.7% during the 3rd quarter. BNP Paribas Financial Markets now owns 14,018 shares of the technology company's stock worth $511,000 after purchasing an additional 4,594 shares during the period. Finally, Brooklyn Investment Group lifted its holdings in shares of Digi International by 3,880.3% in the 3rd quarter. Brooklyn Investment Group now owns 5,652 shares of the technology company's stock worth $206,000 after purchasing an additional 5,510 shares during the last quarter. 95.90% of the stock is owned by institutional investors and hedge funds.

Digi International Company Profile

Digi International Inc is a provider of Internet of Things (IoT) connectivity products and services designed to link devices to networks and applications securely. The company develops a broad range of networking hardware, including cellular and Ethernet routers, gateways, embedded modules and adaptors, as well as accessories and antennas. Digi's solutions enable businesses to deploy remote monitoring, control and automation systems across diverse industries such as transportation, utilities, healthcare, retail and industrial manufacturing.

In addition to its physical devices, Digi offers cloud-based management software and professional services that simplify device configuration, monitoring and over-the-air updates.

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