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

Key Points

• Digi International has a consensus analyst rating of "Moderate Buy", with seven analysts covering the stock: four buy ratings and three hold ratings. The average 1-year price target is $64.20.
• The company reported strong quarterly results, beating EPS and revenue estimates, with EPS of $0.62 versus $0.58 expected and revenue of $130.74 million, up 25.1% year over year. Digi also raised its Q3 2026 guidance to $0.650-$0.680 EPS.
• DGII shares were up 6.0% and opened at $65.78, near their 52-week high of $69.81. The stock has also seen some insider selling, while institutional investors continue to hold a large majority of the shares.

Digi International Inc. (NASDAQ:DGII - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the seven analysts that are currently covering the firm, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $64.20.

A number of research analysts have issued reports on DGII shares. Piper Sandler increased their target price on shares of Digi International from $46.00 to $63.00 and gave the stock a "neutral" rating in a research report on Thursday. Wall Street Zen upgraded shares of Digi International from a "buy" rating to a "strong-buy" rating in a research report on Saturday, January 31st. Weiss Ratings restated a "hold (c+)" rating on shares of Digi International in a research report on Monday, March 23rd. Roth Mkm restated a "buy" rating and set a $70.00 target price on shares of Digi International in a research report on Thursday. Finally, Craig Hallum increased their target price on shares of Digi International from $50.00 to $75.00 and gave the stock a "buy" rating in a research report on Thursday.

Digi International Stock Up 6.0%

Shares of DGII opened at $65.78 on Friday. Digi International has a 52 week low of $30.69 and a 52 week high of $69.81. The firm has a market cap of $2.48 billion, a P/E ratio of 58.21 and a beta of 0.94. The firm's 50-day simple moving average is $52.08 and its 200 day simple moving average is $45.98. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.90 and a current ratio of 1.11.

Digi International (NASDAQ:DGII - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.62 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 business had revenue of $130.74 million for the quarter, compared to analyst estimates of $125.03 million. During the same quarter in the prior year, the business earned $0.51 EPS. Digi International's quarterly revenue was up 25.1% on a year-over-year basis. Digi International has set its Q3 2026 guidance at 0.650-0.680 EPS. On average, analysts forecast that Digi International will post 1.87 earnings per share for the current year.

Insiders Place Their Bets

In related news, Director Satbir Khanuja sold 6,000 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $46.00, for a total transaction of $276,000.00. Following the sale, the director owned 85,298 shares in the company, valued at approximately $3,923,708. This trade represents a 6.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP James E. Freeland sold 1,355 shares of the 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 sale, the vice president owned 19,987 shares in the company, valued at $916,204.08. This represents a 6.35% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 13,455 shares of company stock worth $616,357 in the last quarter. Corporate insiders own 3.40% of the company's stock.

Institutional Trading of Digi International

Large investors have recently made changes to their positions in the company. Bessemer Group Inc. boosted its position in shares of Digi International by 2,215.1% during the 3rd quarter. Bessemer Group Inc. now owns 1,227 shares of the technology company's stock worth $45,000 after acquiring an additional 1,174 shares in the last quarter. Lazard Asset Management LLC boosted its position in shares of 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 acquiring an additional 339 shares in the last quarter. Russell Investments Group Ltd. boosted 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 acquiring an additional 3,169 shares in the last quarter. LSV Asset Management acquired a new stake in shares of Digi International during the 3rd quarter worth approximately $153,000. Finally, FourThought Financial Partners LLC acquired a new stake in shares of Digi International during the 4th quarter worth approximately $204,000. Institutional investors and hedge funds own 95.90% of the company's stock.

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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