Digi International (NASDAQ:DGII) Rating Increased to Hold at Zacks Research

Key Points

• Zacks Research upgraded Digi International (DGII) from a "strong sell" to a "hold," signaling an improvement in near-term analyst sentiment.
• Overall analyst coverage is mixed-to-positive with four Buys and three Holds, an average rating of "Moderate Buy" and an average price target of $49.80 after several firms raised their targets.
• Digi recently beat earnings and revenue (revenue +17.9% YoY), set Q2 2026 EPS guidance of $0.560–$0.590, and is trading near its 52-week high (~$52) with a market cap of $1.96 billion and a PE of 46.6.

Digi International (NASDAQ:DGII - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

A number of other brokerages also recently weighed in on DGII. Piper Sandler boosted their target price on shares of Digi International from $41.00 to $46.00 and gave the stock a "neutral" rating in a research note on Monday, January 5th. Stephens boosted their target price on shares of Digi International from $50.00 to $55.00 and gave the stock an "overweight" rating in a research note on Friday, January 2nd. Craig Hallum reaffirmed a "buy" rating and issued a $50.00 target price on shares of Digi International in a research note on Thursday, February 5th. Wall Street Zen raised shares of Digi International from a "buy" rating to a "strong-buy" rating in a research note on Saturday, January 31st. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Digi International in a research note on Monday, March 23rd. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $49.80.

Digi International Trading Up 3.3%

Shares of NASDAQ DGII opened at $52.22 on Monday. Digi International has a 1-year low of $22.66 and a 1-year high of $52.32. The company has a market cap of $1.96 billion, a PE ratio of 46.63 and a beta of 0.85. The company has a current ratio of 1.24, a quick ratio of 0.90 and a debt-to-equity ratio of 0.21. The company has a 50-day moving average of $48.45 and a two-hundred day moving average of $43.31.

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

Insider Transactions at Digi International

In other news, VP David H. Sampsell sold 5,000 shares of Digi International stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $45.74, for a total transaction of $228,700.00. Following the completion of the sale, the vice president owned 24,740 shares in the company, valued at $1,131,607.60. The trade was a 16.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, VP James E. Freeland sold 1,355 shares of Digi International 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 of the company's stock, valued at approximately $916,204.08. This represents a 6.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 13,455 shares of company stock worth $616,357 in the last quarter. 3.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Digi International

Institutional investors have recently modified their holdings of the business. Hillsdale Investment Management Inc. grew its holdings in Digi International by 47.2% during the third quarter. Hillsdale Investment Management Inc. now owns 181,255 shares of the technology company's stock valued at $6,609,000 after purchasing an additional 58,100 shares during the period. GW&K Investment Management LLC acquired a new position in Digi International during the fourth quarter valued at approximately $2,410,000. Ameriprise Financial Inc. grew its holdings in Digi International by 7.7% during the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company's stock valued at $22,736,000 after purchasing an additional 46,659 shares during the period. AEGON ASSET MANAGEMENT UK Plc acquired a new position in shares of Digi International in the fourth quarter valued at approximately $2,000,000. Finally, SG Americas Securities LLC boosted its holdings in shares of Digi International by 445.3% in the third quarter. SG Americas Securities LLC now owns 30,670 shares of the technology company's stock valued at $1,118,000 after buying an additional 25,046 shares during the period. 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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