Digi International Inc. (NASDAQ:DGII) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Digi International has a “Moderate Buy” consensus rating from seven analysts, with five buys and two holds. The average 12-month price target is $82.40.
• The company exceeded quarterly expectations, reporting $0.75 in EPS versus the $0.66 estimate and $138.67 million in revenue, up 29% year over year.
• DGII shares opened at $74.56, while institutional investors hold 95.9% of the stock; several analysts recently raised their price targets to as high as $86.

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

DGII has been the topic of several analyst reports. Stephens boosted their target price on Digi International from $75.00 to $85.00 and gave the company an "overweight" rating in a research report on Thursday, August 6th. B. Riley Financial lifted their price objective on shares of Digi International from $78.00 to $86.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Weiss Ratings upgraded shares of Digi International from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday. Piper Sandler lifted their price target on shares of Digi International from $63.00 to $76.00 and gave the stock a "neutral" rating in a research note on Thursday, August 6th. Finally, Zacks Research cut shares of Digi International from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 3rd.

Digi International Stock Down 1.4%

DGII stock opened at $74.56 on Tuesday. The company has a debt-to-equity ratio of 0.16, a quick ratio of 0.78 and a current ratio of 1.13. The company has a market cap of $2.83 billion, a price-to-earnings ratio of 59.18 and a beta of 0.96. The business's 50-day moving average is $74.49 and its two-hundred day moving average is $66.37. Digi International has a fifty-two week low of $34.41 and a fifty-two week high of $86.84.

Digi International (NASDAQ:DGII - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The technology company reported $0.75 earnings per share for the quarter, topping analysts' consensus estimates of $0.66 by $0.09. The business had revenue of $138.67 million during 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 was up 29.0% on a year-over-year basis. During the same period in the prior year, the business posted $0.53 earnings per share. Digi International has set its Q4 2026 guidance at 0.750-0.780 EPS. As a group, analysts forecast that Digi International will post 2.31 earnings per share for the current year.

Institutional Trading of Digi International

A number of hedge funds have recently added to or reduced their stakes in the business. Bank of America Corp DE purchased a new position in Digi International during the 2nd quarter worth approximately $92,680,000. Lisanti Capital Growth LLC purchased a new stake in shares of Digi International during the second quarter worth approximately $1,614,000. The Manufacturers Life Insurance Company purchased a new position in Digi International in the 2nd quarter worth approximately $1,391,000. Horizon Investment Services LLC purchased a new stake in shares of Digi International in the second quarter valued at about $945,000. Finally, Globeflex Capital L P purchased a new stake in Digi International in the second quarter valued at $3,250,000. 95.90% of the stock is owned by hedge funds and other institutional investors.

About Digi International

Digi International Inc NASDAQ: DGII provides business and industrial Internet of Things (IoT) connectivity products and solutions. The company helps organizations connect, monitor and manage equipment, sensors and other devices over cellular, wireless and wired networks.

Its product portfolio includes industrial routers and gateways, embedded systems and wireless modules, console servers, serial connectivity products and infrastructure for machine-to-machine communications. Digi also offers cloud-based device management and monitoring through Digi Remote Manager, along with professional services and support designed to help customers deploy and maintain connected devices.

Digi's solutions are used across industries such as transportation, energy, healthcare, manufacturing, retail, government and commercial services.

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