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

Key Points

• Digi International has a consensus analyst rating of "Moderate Buy" from seven covering firms, with an average 12-month price target of $66.20.
• The company recently beat quarterly expectations, reporting $0.62 EPS versus $0.58 expected and $130.74 million in revenue versus $125.03 million estimated, while revenue rose 25.1% year over year.
• Several analysts raised price targets on DGII, but insiders also sold shares recently; VP Terrence G. Schneider and VP James E. Freeland collectively sold stock, bringing total insider sales to 21,008 shares over the last three months.

Digi International Inc. (NASDAQ:DGII - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the seven research firms that are currently covering the company, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average twelve-month price target among analysts that have issued a report on the stock in the last year is $66.20.

A number of equities analysts have issued reports on the stock. Piper Sandler raised their price objective on shares of Digi International from $46.00 to $63.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Zacks Research raised shares of Digi International from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Stephens raised their price objective on shares of Digi International from $65.00 to $75.00 and gave the company an "overweight" rating in a research note on Tuesday, May 12th. Craig Hallum raised their price objective on shares of Digi International from $50.00 to $75.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Finally, Weiss Ratings cut shares of Digi International from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, May 11th.

Digi International Stock Performance

NASDAQ:DGII opened at $69.82 on Wednesday. The firm has a market capitalization of $2.63 billion, a PE ratio of 61.79 and a beta of 0.98. The firm has a 50-day moving average price of $57.20 and a 200 day moving average price of $49.28. The company has a quick ratio of 0.77, a current ratio of 1.11 and a debt-to-equity ratio of 0.21. Digi International has a 12-month low of $30.69 and a 12-month high of $70.79.

Digi International (NASDAQ:DGII - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The technology company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.58 by $0.04. The company had revenue of $130.74 million during the quarter, compared to analyst estimates of $125.03 million. Digi International had a net margin of 9.10% and a return on equity of 11.28%. The company's revenue was up 25.1% on a year-over-year basis. During the same quarter last year, the business posted $0.51 earnings per share. Digi International has set its Q3 2026 guidance at 0.650-0.680 EPS. Research analysts anticipate that Digi International will post 2.11 earnings per share for the current fiscal year.

Insider Transactions at Digi International

In other news, VP Terrence G. Schneider sold 14,182 shares of Digi International stock in a transaction on Monday, May 11th. The shares were sold at an average price of $65.61, for a total transaction of $930,481.02. Following the transaction, the vice president directly owned 26,759 shares of the company's stock, valued at $1,755,657.99. This trade represents a 34.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP James E. Freeland sold 450 shares of Digi International stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $68.00, for a total transaction of $30,600.00. Following the transaction, the vice president directly owned 19,219 shares in the company, valued at approximately $1,306,892. This represents a 2.29% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,008 shares of company stock valued at $1,376,222 over the last three months. 3.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Digi International

A number of hedge funds and other institutional investors have recently made changes to their positions in DGII. Leuthold Group LLC lifted its position in Digi International by 0.5% in the 4th quarter. Leuthold Group LLC now owns 56,738 shares of the technology company's stock valued at $2,456,000 after acquiring an additional 264 shares in the last quarter. Russell Investments Group Ltd. increased its holdings in Digi International by 8.1% during the 4th quarter. Russell Investments Group Ltd. now owns 3,649 shares of the technology company's stock worth $158,000 after purchasing an additional 273 shares in the last quarter. Brooklyn Investment Group increased its holdings in Digi International by 5.9% during the 4th quarter. Brooklyn Investment Group now owns 5,983 shares of the technology company's stock worth $265,000 after purchasing an additional 331 shares in the last quarter. Lazard Asset Management LLC increased its holdings in Digi International by 25.1% during the 2nd quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company's stock worth $58,000 after purchasing an additional 339 shares in the last quarter. Finally, Verity Asset Management Inc. increased its holdings in Digi International by 7.5% during the 4th quarter. Verity Asset Management Inc. now owns 13,690 shares of the technology company's stock worth $593,000 after purchasing an additional 951 shares in the last quarter. 95.90% of the stock is owned by institutional investors.

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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