Digi International (NASDAQ:DGII) Shares Gap Up on Analyst Upgrade

Key Points

• Shares of Digi International gapped up after Craig Hallum raised its price target from $50 to $75, with the stock opening around $67 and jumping roughly 13.9%.
• Digi reported strong Q2 results — record quarterly revenue of $131M, record end‑of‑quarter ARR of about $184M and record operating cash flow of ~$41M — and raised Q3 FY2026 guidance to $0.65–$0.68 EPS and $130–$134M revenue.
• Insiders sold 13,455 shares worth roughly $616K over the last quarter (including a VP and a director), leaving insiders with about 3.4% ownership despite heavy institutional ownership (~95.9%).

Digi International Inc. (NASDAQ:DGII - Get Free Report) shares gapped up before the market opened on Thursday after Craig Hallum raised their price target on the stock from $50.00 to $75.00. The stock had previously closed at $58.85, but opened at $67.04. Craig Hallum currently has a buy rating on the stock. Digi International shares last traded at $67.5140, with a volume of 77,384 shares trading hands.

Several other equities analysts have also weighed in on DGII. Wall Street Zen raised shares of Digi International from a "buy" rating to a "strong-buy" rating in a research report on Saturday, January 31st. Zacks Research raised shares of Digi International from a "strong sell" rating to a "hold" rating in a research report on Monday, April 6th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Digi International in a research report on Monday, March 23rd. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $60.20.

Insider Transactions at Digi International

In other news, VP David H. Sampsell sold 5,000 shares of the firm's stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $45.74, for a total value of $228,700.00. Following the sale, the vice president owned 24,740 shares in the company, valued at approximately $1,131,607.60. This trade represents a 16.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Satbir Khanuja sold 6,000 shares of the firm's stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $46.00, for a total transaction of $276,000.00. Following the completion of the sale, the director owned 85,298 shares in the company, valued at approximately $3,923,708. The trade was a 6.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 13,455 shares of company stock worth $616,357. Insiders own 3.40% of the company's stock.

Digi International News Roundup

Here are the key news stories impacting Digi International this week:

• Positive Sentiment: Q2 results beat consensus — Digi reported $0.62 EPS (vs. ~$0.58 est.) and roughly $131M revenue, with revenue up ~25% YoY and improved gross margin. Management highlighted record quarterly revenue and strong operating cash flow, supporting the upside thesis. BusinessWire: Digi Reports Second Fiscal Quarter 2026 Results
• Positive Sentiment: Management raised Q3 FY2026 guidance: EPS $0.65–$0.68 (vs. consensus ~$0.55) and revenue $130–$134M (vs. consensus ~$126M). The guidance beat increases visibility on continued revenue and earnings growth. Digi FY2026 Q2 Press Release / Slide Deck
• Positive Sentiment: Company posted record end‑of‑quarter ARR (~$184M) and record operating cash flow (~$41M), signaling recurring revenue strength and healthy cash generation — positive for valuation multiple expansion. BusinessWire: Record ARR & Cash Flow
• Positive Sentiment: Analyst upgrade — Craig Hallum raised its price target to $75 and reiterated a Buy rating, providing additional buy‑side validation and upside to the current share price level. TickerReport: Craig Hallum Raises Price Target
• Neutral Sentiment: Q2 earnings call transcript and supplemental materials are available for further color on product mix, margin drivers and ARR composition — useful for investors wanting management detail. Seeking Alpha: Q2 2026 Earnings Call Transcript

Institutional Investors Weigh In On Digi International

A number of institutional investors have recently bought and sold shares of DGII. Ameriprise Financial Inc. boosted its stake in shares of Digi International by 7.7% in the 2nd 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 in the last quarter. Hillsdale Investment Management Inc. grew its holdings in Digi International by 3.4% during the 1st quarter. Hillsdale Investment Management Inc. now owns 199,635 shares of the technology company's stock worth $9,622,000 after acquiring an additional 6,480 shares during the last quarter. Herald Investment Management Ltd increased its position in Digi International by 25.0% in the 3rd quarter. Herald Investment Management Ltd now owns 100,000 shares of the technology company's stock valued at $3,646,000 after acquiring an additional 20,000 shares in the last quarter. Leuthold Group LLC lifted its position in shares of Digi International by 0.5% during the fourth quarter. Leuthold Group LLC now owns 56,738 shares of the technology company's stock worth $2,456,000 after purchasing an additional 264 shares in the last quarter. Finally, GW&K Investment Management LLC bought a new stake in shares of Digi International during the fourth quarter valued at approximately $2,410,000. Institutional investors and hedge funds own 95.90% of the company's stock.

Digi International Stock Up 13.9%

The firm's 50-day moving average is $51.81 and its two-hundred day moving average is $45.81. The stock has a market cap of $2.52 billion, a P/E ratio of 60.63 and a beta of 0.94. 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 results on Wednesday, February 4th. The technology company reported $0.56 EPS for the quarter, topping the consensus estimate of $0.55 by $0.01. The company had revenue of $122.46 million during the quarter, compared to analysts' expectations 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 was up 17.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.45 EPS. On average, equities research analysts anticipate that Digi International Inc. will post 1.87 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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