Digi International (NASDAQ:DGII) Stock Price Expected to Rise, Stephens Analyst Says

Digi International (NASDAQ:DGII) had its target price lifted by equities research analysts at Stephens from $75.00 to $85.00 in a report released on Thursday,Benzinga reports. The firm currently has an “overweight” rating on the technology company’s stock. Stephens’ price target points to a potential upside of 4.85% from the stock’s previous close.

DGII has been the topic of a number of other reports. Weiss Ratings raised shares of Digi International from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday. Roth Capital reissued a “buy” rating and issued a $70.00 price objective on shares of Digi International in a research report on Thursday, May 7th. Craig Hallum raised their target price on shares of Digi International from $50.00 to $75.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Zacks Research lowered shares of Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday. Finally, Piper Sandler lifted their target price on shares of Digi International from $46.00 to $63.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Digi International presently has an average rating of “Moderate Buy” and a consensus target price of $75.80.

Digi International Trading Up 11.4%

NASDAQ:DGII traded up $8.31 on Thursday, hitting $81.06. 136,099 shares of the stock were exchanged, compared to its average volume of 332,936. The stock has a fifty day moving average of $68.60 and a 200-day moving average of $57.86. The stock has a market cap of $3.06 billion, a PE ratio of 71.62 and a beta of 0.97. The company has a current ratio of 1.11, a quick ratio of 0.77 and a debt-to-equity ratio of 0.21. Digi International has a fifty-two week low of $30.69 and a fifty-two week high of $82.65.

Digi International (NASDAQ:DGII) last released its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.75 earnings per share for the quarter, beating the consensus estimate of $0.66 by $0.09. Digi International had a return on equity of 11.28% and a net margin of 9.10%.The business had revenue of $138.67 million for the quarter, compared to analyst estimates of $132.57 million. During the same period in the previous year, the company posted $0.53 EPS. The company’s revenue was up 29.0% compared to the same quarter last year. Digi International has set its Q4 2026 guidance at 0.750-0.780 EPS. As a group, equities analysts expect that Digi International will post 2.11 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Digi International news, VP Terrence G. Schneider sold 14,182 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $65.61, for a total transaction of $930,481.02. Following the completion of the sale, the vice president owned 26,759 shares in the company, valued at $1,755,657.99. This trade represents a 34.64% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James J. Loch sold 100,000 shares of Digi International stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $69.44, for a total value of $6,944,000.00. Following the sale, the chief financial officer owned 167,589 shares in the company, valued at $11,637,380.16. This represents a 37.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 121,008 shares of company stock worth $8,320,222 in the last quarter. Company insiders own 3.40% of the company’s stock.

Institutional Trading of Digi International

Institutional investors have recently added to or reduced their stakes in the stock. Ameriprise Financial Inc. grew its holdings in Digi International by 7.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company’s stock worth $22,736,000 after acquiring an additional 46,659 shares in the last quarter. Hillsdale Investment Management Inc. raised its stake in shares of Digi International by 3.4% in the 1st quarter. Hillsdale Investment Management Inc. now owns 199,635 shares of the technology company’s stock valued at $9,622,000 after purchasing an additional 6,480 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 during the last quarter. GW&K Investment Management LLC bought a new position in shares of Digi International during the fourth quarter worth about $2,410,000. Finally, Campbell & CO Investment Adviser LLC grew its stake in Digi International by 65.0% in the fourth quarter. Campbell & CO Investment Adviser LLC now owns 47,468 shares of the technology company’s stock worth $2,055,000 after purchasing an additional 18,706 shares in the last quarter. 95.90% of the stock is owned by institutional investors and hedge funds.

Digi International News Summary

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

• Positive Sentiment: Digi reported fiscal third-quarter revenue of approximately $139 million, up 29% year over year, while adjusted earnings reached $0.75 per share versus analyst expectations of roughly $0.66-$0.67. Gross margin also improved 130 basis points to 64.8%, supporting the bullish reaction. Digi International Reports Third Fiscal Quarter 2026 Results
• Positive Sentiment: Management issued fiscal fourth-quarter EPS guidance of $0.750-$0.780, well above the $0.610 consensus estimate, and revenue guidance of $138 million-$142 million, ahead of the $135.9 million forecast.
• Positive Sentiment: Fiscal 2026 revenue guidance was set at $529 million-$533 million, exceeding the $521.6 million consensus estimate. The results call and investor commentary also highlighted record revenue and improving investor interest in small-cap growth companies. Digi International Strengthens on Record Revenue
• Neutral Sentiment: The earnings report showed net margin of 9.1% and return on equity of 11.28%. However, DGII trades at a relatively elevated P/E ratio of about 65, leaving the stock sensitive to any slowdown in growth or future guidance.
• Negative Sentiment: Zacks Research downgraded Digi International from “Strong Buy” to “Hold.” The downgrade may temper enthusiasm, although it was outweighed by the quarter’s earnings beat and stronger-than-expected outlook. Digi International Q3 Earnings and Revenues Top Estimates

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.