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

Key Points

• Digi International has a consensus analyst rating of “Moderate Buy” from seven brokerages, with an average 12-month price target of $66.20.
• Recent analyst moves were mixed but generally constructive, including price-target increases from Piper Sandler and Stephens, while Zacks upgraded the stock to strong-buy and Weiss Ratings downgraded it slightly.
• The company reported better-than-expected quarterly results, with EPS of $0.62 versus $0.58 expected and revenue up 25.1% year over year; however, insiders have sold shares recently, including VP Terrence G. Schneider and VP James E. Freeland.

Digi International Inc. (NASDAQ:DGII - Get Free Report) has received an average rating of "Moderate Buy" from the seven brokerages that are presently covering the company, MarketBeat reports. Two investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $66.20.

Several equities research analysts have recently weighed in on the company. Weiss Ratings cut Digi International from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, May 11th. Zacks Research raised shares of Digi International from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 3rd. Piper Sandler upped their target price 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. Roth Capital reissued a "buy" rating and issued a $70.00 price target on shares of Digi International in a report on Thursday, May 7th. Finally, Stephens raised their price target on shares of Digi International from $65.00 to $75.00 and gave the stock an "overweight" rating in a research report on Tuesday, May 12th.

Insider Activity at Digi International

In related news, VP Terrence G. Schneider sold 14,182 shares of Digi International stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $65.61, for a total transaction of $930,481.02. Following the sale, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP James E. Freeland sold 450 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $68.00, for a total value of $30,600.00. Following the transaction, the vice president owned 19,219 shares in the company, valued at $1,306,892. This represents a 2.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 121,008 shares of company stock worth $8,320,222 in the last three months. Corporate insiders own 3.40% of the company's stock.

Institutional Trading of Digi International

Institutional investors have recently modified their holdings of the company. GAMMA Investing LLC increased its position in shares of Digi International by 17.0% during the second quarter. GAMMA Investing LLC now owns 2,576 shares of the technology company's stock valued at $193,000 after purchasing an additional 374 shares during the period. Pacer Advisors Inc. boosted its stake in Digi International by 41.2% during the first quarter. Pacer Advisors Inc. now owns 12,304 shares of the technology company's stock worth $593,000 after buying an additional 3,592 shares in the last quarter. Glenmede Trust Co. NA boosted its stake in Digi International by 11.2% during the first quarter. Glenmede Trust Co. NA now owns 18,712 shares of the technology company's stock worth $902,000 after buying an additional 1,888 shares in the last quarter. California State Teachers Retirement System increased its holdings in Digi International by 30.3% in the 1st quarter. California State Teachers Retirement System now owns 45,815 shares of the technology company's stock valued at $2,208,000 after buying an additional 10,661 shares during the period. Finally, Hillsdale Investment Management Inc. increased its holdings in 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 buying an additional 6,480 shares during the period. Institutional investors and hedge funds own 95.90% of the company's stock.

Digi International Trading Down 0.9%

Digi International stock opened at $66.20 on Thursday. Digi International has a 52 week low of $30.69 and a 52 week high of $76.41. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.77 and a current ratio of 1.11. The firm has a market capitalization of $2.50 billion, a PE ratio of 58.58 and a beta of 0.96. The business's 50-day simple moving average is $67.76 and its 200-day simple moving average is $56.04.

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

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