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

Key Points

• Analysts have given Digi International a consensus rating of "Moderate Buy" from seven firms (four buys, three holds) with an average 1‑year target price of $49.80.
• Digi beat quarterly expectations with $0.56 EPS (vs. $0.55 est.) and revenue of $122.46M (up 17.9% YoY), and provided Q2 guidance of $0.560–0.590 EPS; analysts forecast ~$1.68 EPS for the fiscal year.
• Insiders have been selling recently—13,455 shares (~$616,357) over the past three months—while institutional investors own about 95.9% of the stock and insiders hold roughly 3.4%.

Digi International Inc. (NASDAQ:DGII - Get Free Report) has earned a consensus rating of "Moderate Buy" from the seven ratings firms that are covering the firm, MarketBeat Ratings reports. Three research analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year target price among brokerages that have issued ratings on the stock in the last year is $49.80.

Several brokerages have recently issued reports on DGII. Wall Street Zen upgraded Digi International from a "buy" rating to a "strong-buy" rating in a research note on Saturday, January 31st. Stephens upped their price target on Digi International from $50.00 to $55.00 and gave the company an "overweight" rating in a research report on Friday, January 2nd. Zacks Research upgraded Digi International from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Craig Hallum reissued a "buy" rating and issued a $50.00 price objective on shares of Digi International in a research note on Thursday, February 5th. Finally, Piper Sandler boosted their price objective on Digi International from $41.00 to $46.00 and gave the company a "neutral" rating in a research note on Monday, January 5th.

Insider Buying and Selling

In related news, VP James E. Freeland sold 1,355 shares of the company's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $45.84, for a total transaction of $62,113.20. Following the transaction, the vice president directly owned 19,987 shares of the company's stock, valued at approximately $916,204.08. This represents a 6.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Satbir Khanuja sold 6,000 shares of the company's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $46.00, for a total value of $276,000.00. Following the transaction, the director directly owned 85,298 shares in the company, valued at approximately $3,923,708. This trade represents a 6.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 13,455 shares of company stock valued at $616,357. 3.40% of the stock is owned by company insiders.

Institutional Trading of Digi International

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Millennium Management LLC increased its holdings in Digi International by 138.3% during the 4th quarter. Millennium Management LLC now owns 19,055 shares of the technology company's stock worth $825,000 after purchasing an additional 11,059 shares in the last quarter. Russell Investments Group Ltd. lifted its position in shares of Digi International by 8.1% during the 4th quarter. Russell Investments Group Ltd. now owns 3,649 shares of the technology company's stock valued at $158,000 after buying an additional 273 shares during the last quarter. Captrust Financial Advisors lifted its position in shares of Digi International by 15.2% during the 4th quarter. Captrust Financial Advisors now owns 18,204 shares of the technology company's stock valued at $788,000 after buying an additional 2,396 shares during the last quarter. Brooklyn Investment Group lifted its position in shares of Digi International by 5.9% during the 4th quarter. Brooklyn Investment Group now owns 5,983 shares of the technology company's stock valued at $265,000 after buying an additional 331 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC boosted its holdings in shares of Digi International by 65.0% in the fourth quarter. Campbell & CO Investment Adviser LLC now owns 47,468 shares of the technology company's stock worth $2,055,000 after acquiring an additional 18,706 shares during the period. 95.90% of the stock is owned by institutional investors.

Digi International Price Performance

Shares of NASDAQ DGII opened at $55.12 on Tuesday. The stock has a market capitalization of $2.07 billion, a PE ratio of 49.21 and a beta of 0.85. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 0.90. The business has a fifty day moving average price of $49.24 and a two-hundred day moving average price of $43.79. Digi International has a fifty-two week low of $23.93 and a fifty-two week high of $55.60.

Digi International (NASDAQ:DGII - Get Free Report) last announced its quarterly earnings data on Wednesday, February 4th. The technology company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.55 by $0.01. Digi International had a return on equity of 10.93% and a net margin of 9.45%.The firm had revenue of $122.46 million during the quarter, compared to analysts' expectations of $115.90 million. During the same period in the previous year, the firm earned $0.45 EPS. The company's quarterly revenue was up 17.9% compared to the same quarter last year. Digi International has set its Q2 2026 guidance at 0.560-0.590 EPS. As a group, equities analysts predict that Digi International will post 1.68 earnings per share for the current fiscal year.

About Digi International

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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