Roth Capital Expects Higher Earnings for Digi International

Key Points

• Roth Capital raised its FY2025 EPS forecast for Digi International to $1.73 per share, from an earlier estimate of $1.72, while maintaining a "Buy" rating on the stock.
• Several research firms have upgraded their ratings and target prices for Digi International, with B. Riley raising the target price to $40.00 and Stephens maintaining an "overweight" rating with a target of $50.00.
• Digi International's latest earnings report showed a rise in revenue to $107.51 million, surpassing analyst expectations, and an EPS of $0.53, exceeding the consensus estimate of $0.51.

Digi International Inc. (NASDAQ:DGII - Free Report) - Analysts at Roth Capital boosted their FY2025 earnings per share estimates for shares of Digi International in a research report issued to clients and investors on Tuesday, August 19th. Roth Capital analyst S. Searle now expects that the technology company will earn $1.73 per share for the year, up from their prior estimate of $1.72. Roth Capital currently has a "Buy" rating on the stock. The consensus estimate for Digi International's current full-year earnings is $1.68 per share. Roth Capital also issued estimates for Digi International's Q4 2025 earnings at $0.44 EPS, Q1 2026 earnings at $0.47 EPS, Q2 2026 earnings at $0.44 EPS, Q3 2026 earnings at $0.51 EPS, Q4 2026 earnings at $0.55 EPS and FY2026 earnings at $1.94 EPS.

Digi International (NASDAQ:DGII - Get Free Report) last issued its earnings results on Wednesday, August 6th. The technology company reported $0.53 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.51 by $0.02. Digi International had a return on equity of 10.96% and a net margin of 10.14%.The company had revenue of $107.51 million for the quarter, compared to analysts' expectations of $106.23 million. During the same period last year, the business earned $0.50 EPS. Digi International's quarterly revenue was up 2.2% compared to the same quarter last year.

Other analysts also recently issued research reports about the company. Stephens reiterated an "overweight" rating and set a $50.00 price target on shares of Digi International in a research report on Tuesday, August 19th. Wall Street Zen raised Digi International from a "buy" rating to a "strong-buy" rating in a research note on Tuesday, May 20th. B. Riley boosted their target price on Digi International from $35.00 to $40.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. Finally, Piper Sandler upped their price target on Digi International from $30.00 to $33.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $38.75.

Digi International Stock Performance

DGII traded up $0.12 during trading hours on Friday, hitting $34.16. The stock had a trading volume of 33,876 shares, compared to its average volume of 194,955. The company has a quick ratio of 1.03, a current ratio of 1.43 and a debt-to-equity ratio of 0.06. The stock has a market cap of $1.27 billion, a PE ratio of 29.94, a price-to-earnings-growth ratio of 1.15 and a beta of 0.89. Digi International has a 1 year low of $22.39 and a 1 year high of $37.06. The company's fifty day simple moving average is $33.67 and its 200 day simple moving average is $31.46.

Institutional Trading of Digi International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. lifted its stake in shares of Digi International by 8.8% in the 4th quarter. Ameriprise Financial Inc. now owns 359,893 shares of the technology company's stock valued at $10,880,000 after purchasing an additional 29,026 shares in the last quarter. GAMMA Investing LLC lifted its position in Digi International by 2,467.2% during the 1st quarter. GAMMA Investing LLC now owns 28,136 shares of the technology company's stock worth $783,000 after acquiring an additional 27,040 shares in the last quarter. Herald Investment Management Ltd acquired a new position in Digi International during the 1st quarter worth approximately $2,226,000. Lazard Asset Management LLC acquired a new stake in Digi International in the fourth quarter valued at $45,000. Finally, Pacer Advisors Inc. raised its holdings in Digi International by 2,297.0% in the first quarter. Pacer Advisors Inc. now owns 238,019 shares of the technology company's stock valued at $6,624,000 after acquiring an additional 228,089 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 provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. The company operates in two segments, IoT Products & Services, and IoT Solutions. It offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand.