Digi International (NASDAQ:DGII) Stock Price Passes Above 200 Day Moving Average - What's Next?

Key Points

• Digi International shares moved above their 200-day moving average, trading as high as $64.14 and last changing hands at $63.85. The move came despite a slight day-over-day decline of 0.2%.
• Wall Street sentiment is generally positive, with several analysts raising price targets recently. The consensus rating is "Moderate Buy" with an average target price of $66.20.
• Recent earnings were solid, as Digi beat Q2 estimates with EPS of $0.62 versus $0.58 expected and revenue of $130.74 million, up 25.1% year over year. The company also guided Q3 2026 EPS to $0.65-$0.68.

Digi International Inc. (NASDAQ:DGII - Get Free Report)'s share price passed above its 200-day moving average during trading on Thursday . The stock has a 200-day moving average of $55.43 and traded as high as $64.14. Digi International shares last traded at $63.85, with a volume of 406,543 shares traded.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. 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. Weiss Ratings downgraded Digi International from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, May 11th. Craig Hallum increased their price target on shares of Digi International from $50.00 to $75.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Stephens lifted their price objective on Digi International from $65.00 to $75.00 and gave the company an "overweight" rating in a research note on Tuesday, May 12th. Finally, Zacks Research raised shares of Digi International from a "hold" rating to a "strong-buy" rating in a report on Friday, July 3rd. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $66.20.

Digi International Trading Down 0.2%

The company has a 50 day moving average of $67.65 and a 200 day moving average of $55.43. The stock has a market capitalization of $2.41 billion, a price-to-earnings ratio of 56.50 and a beta of 0.96. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.77 and a current ratio of 1.11.

Digi International (NASDAQ:DGII - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The technology company reported $0.62 earnings per share for the quarter, topping 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 firm had revenue of $130.74 million for the quarter, compared to analyst estimates of $125.03 million. During the same period in the previous year, the business posted $0.51 earnings per share. 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, research analysts predict that Digi International Inc. will post 2.11 EPS for the current fiscal year.

Insider Buying and Selling

In other news, VP James E. Freeland sold 450 shares of Digi International stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $68.00, for a total transaction of $30,600.00. Following the transaction, the vice president owned 19,219 shares in the company, valued at $1,306,892. The trade was a 2.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO James J. Loch sold 100,000 shares of Digi International stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $69.44, for a total transaction of $6,944,000.00. Following the transaction, the chief financial officer directly owned 167,589 shares in the company, valued at $11,637,380.16. This trade represents a 37.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 121,008 shares of company stock worth $8,320,222 in the last quarter. 3.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Digi International

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Lazard Asset Management LLC raised its holdings in Digi International by 25.1% in the 2nd quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company's stock valued at $58,000 after buying an additional 339 shares during the period. GAMMA Investing LLC lifted its holdings in Digi International by 17.0% during the 2nd quarter. GAMMA Investing LLC now owns 2,576 shares of the technology company's stock worth $193,000 after buying an additional 374 shares in the last quarter. Russell Investments Group Ltd. raised its stake in shares of Digi International by 1,530.9% in the third quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company's stock valued at $123,000 after acquiring an additional 3,169 shares in the last quarter. FourThought Financial Partners LLC acquired a new stake in Digi International in the 4th quarter valued at about $204,000. Finally, Brooklyn Investment Group grew its position in shares of Digi International by 3,880.3% during the third quarter. Brooklyn Investment Group now owns 5,652 shares of the technology company's stock worth $206,000 after buying an additional 5,510 shares in the last quarter. Hedge funds and other institutional investors 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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