Digi International (NASDAQ:DGII) Sets New 1-Year High - What's Next?

Key Points

• 52-week high: Digi's shares hit a new 52-week high, trading as high as $57.61 and last at $57.24 on volume of about 31,988 shares.
• Analyst sentiment: The stock has an average rating of “Moderate Buy” with four Buys and three Holds and an average price target of $49.80, despite several analysts recently raising price targets and ratings.
• Recent results and outlook: Digi beat quarterly EPS estimates ($0.56 vs. $0.55) and posted revenue of $122.46M (up 17.9% YoY), and guided Q2 EPS to $0.560–$0.590; the company has a market cap of $2.10B and a trailing P/E of 49.93.

Digi International Inc. (NASDAQ:DGII - Get Free Report)'s stock price hit a new 52-week high on Monday . The stock traded as high as $57.61 and last traded at $57.24, with a volume of 31988 shares. The stock had previously closed at $56.66.

Analysts Set New Price Targets

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

Digi International Stock Performance

The firm's 50-day moving average is $50.95 and its 200 day moving average is $44.98. The stock has a market cap of $2.10 billion, a PE ratio of 49.93 and a beta of 0.85. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.90 and a current ratio of 1.24.

Digi International (NASDAQ:DGII - Get Free Report) last issued its quarterly earnings data on Wednesday, February 4th. The technology company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $122.46 million for the quarter, compared to the consensus estimate of $115.90 million. Digi International had a net margin of 9.45% and a return on equity of 10.93%. Digi International's revenue for the quarter was up 17.9% on a year-over-year basis. During the same period last year, the firm posted $0.45 EPS. Digi International has set its Q2 2026 guidance at 0.560-0.590 EPS. As a group, research analysts anticipate that Digi International Inc. will post 1.87 EPS for the current year.

Insider Activity at Digi International

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

Hedge Funds Weigh In On Digi International

Institutional investors and hedge funds have recently made changes to their positions in the stock. Bessemer Group Inc. increased its holdings in shares of Digi International by 2,215.1% in the 3rd quarter. Bessemer Group Inc. now owns 1,227 shares of the technology company's stock valued at $45,000 after purchasing an additional 1,174 shares in the last quarter. Lazard Asset Management LLC boosted its holdings in Digi International by 25.1% during the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company's stock worth $58,000 after buying an additional 339 shares in the last quarter. Russell Investments Group Ltd. grew its position in Digi International by 1,530.9% during the third quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company's stock worth $123,000 after buying an additional 3,169 shares during the period. LSV Asset Management acquired a new position in Digi International during the third quarter worth about $153,000. Finally, FourThought Financial Partners LLC purchased a new position in Digi International in the fourth quarter valued at about $204,000. 95.90% of the stock is owned by institutional investors and hedge funds.

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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