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

Key Points

• Digi International has a consensus analyst rating of “Moderate Buy”, with four buy ratings and three hold ratings among seven covering firms. The average 1-year price target is $66.20.
• Recent analyst actions were mixed but generally positive, including price-target increases from Stephens ($65 to $75) and Craig Hallum ($50 to $75), while Piper Sandler raised its target to $63 and kept a neutral view.
• The company reported better-than-expected quarterly results, with EPS of $0.62 versus estimates of $0.58 and revenue up 25.1% year over year. However, insiders have recently sold shares, including the CFO’s large sale of 100,000 shares.

Shares of Digi International Inc. (NASDAQ:DGII - Get Free Report) have been given a consensus rating of "Moderate Buy" by the seven research firms that are covering the stock, 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 1 year price objective among analysts that have covered the stock in the last year is $66.20.

Several equities analysts have recently weighed in on the company. Stephens lifted their price objective on Digi International from $65.00 to $75.00 and gave the company an "overweight" rating in a research note on Tuesday, May 12th. Zacks Research raised Digi International from a "strong sell" rating to a "hold" rating in a research note on Monday, April 6th. Piper Sandler lifted their price objective on Digi International from $46.00 to $63.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Craig Hallum lifted their price objective on 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 lowered Digi International from a "hold (c+)" rating to a "hold (c)" rating in a research note on Monday, May 11th.

Insider Transactions at Digi International

In other news, VP James E. Freeland sold 450 shares of Digi International stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $68.00, for a total value of $30,600.00. Following the transaction, the vice president directly owned 19,219 shares of the company's stock, valued at $1,306,892. The trade was a 2.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, CFO James J. Loch sold 100,000 shares of Digi International stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $69.44, for a total value of $6,944,000.00. Following the completion of the transaction, the chief financial officer directly owned 167,589 shares in the company, valued at $11,637,380.16. This represents a 37.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 121,008 shares of company stock valued at $8,320,222. 3.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Digi International

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Ameriprise Financial Inc. lifted its position in Digi International by 7.7% during the 2nd 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 in the last quarter. Hillsdale Investment Management Inc. raised its position in shares of Digi International by 3.4% in the 1st quarter. Hillsdale Investment Management Inc. now owns 199,635 shares of the technology company's stock valued at $9,622,000 after purchasing an additional 6,480 shares in the last quarter. Leuthold Group LLC raised its position in shares of 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 purchasing an additional 264 shares in the last quarter. GW&K Investment Management LLC acquired a new position in shares of Digi International in the 4th quarter valued at approximately $2,410,000. Finally, Campbell & CO Investment Adviser LLC increased its holdings in shares of Digi International by 65.0% in the 4th quarter. Campbell & CO Investment Adviser LLC now owns 47,468 shares of the technology company's stock valued at $2,055,000 after acquiring an additional 18,706 shares during the last quarter. 95.90% of the stock is owned by institutional investors and hedge funds.

Digi International Price Performance

Digi International stock opened at $70.55 on Friday. Digi International has a 1 year low of $30.69 and a 1 year high of $71.55. The firm has a 50 day moving average price of $63.79 and a 200 day moving average price of $52.88. The company has a market cap of $2.66 billion, a price-to-earnings ratio of 62.43 and a beta of 0.98. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.77 and a current ratio of 1.11.

Digi International (NASDAQ:DGII - Get Free Report) last released its earnings results on Wednesday, May 6th. The technology company reported $0.62 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.58 by $0.04. Digi International had a net margin of 9.10% and a return on equity of 11.28%. The firm had revenue of $130.74 million during the quarter, compared to the consensus estimate of $125.03 million. During the same period in the previous year, the firm earned $0.51 earnings per share. Digi International's revenue was up 25.1% compared to the same quarter last year. Digi International has set its Q3 2026 guidance at 0.650-0.680 EPS. Sell-side analysts predict that Digi International will post 2.11 earnings per share for the current 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.