Digi International (NASDAQ:DGII) Sets New 12-Month High on Better-Than-Expected Earnings

Digi International Inc. (NASDAQ:DGII) hit a new 52-week high on Thursday following a better than expected earnings announcement. The stock traded as high as $78.64 and last traded at $79.7950, with a volume of 49769 shares trading hands. The stock had previously closed at $72.75.

The technology company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.66 by $0.09. Digi International had a net margin of 9.10% and a return on equity of 11.28%. The firm had revenue of $138.67 million during the quarter, compared to analyst estimates of $132.57 million. During the same quarter last year, the business earned $0.53 EPS. The business’s revenue was up 29.0% on a year-over-year basis. Digi International has set its Q4 2026 guidance at 0.750-0.780 EPS.

Trending Headlines about Digi International

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

Wall Street Analyst Weigh In

A number of research firms have recently commented on DGII. Roth Capital reaffirmed a “buy” rating and set a $70.00 target price on shares of Digi International in a research note on Thursday, May 7th. Craig Hallum raised their price target on Digi International from $50.00 to $75.00 and gave the stock a “buy” rating in a research note on Thursday, May 7th. Zacks Research cut Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday. Piper Sandler increased their target price on Digi International from $46.00 to $63.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Finally, B. Riley Financial boosted their target price on shares of Digi International from $78.00 to $86.00 and gave the company a “buy” rating in a research note on Thursday. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $73.80.

Insider Transactions at Digi International

In other news, VP David H. Sampsell sold 6,376 shares of the firm’s stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $65.11, for a total value of $415,141.36. Following the completion of the transaction, the vice president directly owned 18,364 shares in the company, valued at $1,195,680.04. This trade represents a 25.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Terrence G. Schneider sold 14,182 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $65.61, for a total value of $930,481.02. Following the completion of the transaction, the vice president directly owned 26,759 shares of the company’s stock, valued at approximately $1,755,657.99. This trade represents a 34.64% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 121,008 shares of company stock worth $8,320,222. 3.40% of the stock is owned by insiders.

Hedge Funds Weigh In On Digi International

Hedge funds have recently bought and sold shares of the business. AEGON ASSET MANAGEMENT UK Plc purchased a new position in shares of Digi International during the 4th quarter valued at approximately $2,000,000. SG Americas Securities LLC grew its stake in Digi International by 84.4% in the 1st quarter. SG Americas Securities LLC now owns 47,149 shares of the technology company’s stock valued at $2,273,000 after acquiring an additional 21,584 shares during the period. Strs Ohio increased its holdings in Digi International by 147.1% in the 1st quarter. Strs Ohio now owns 16,800 shares of the technology company’s stock worth $810,000 after acquiring an additional 10,000 shares in the last quarter. Hillsdale Investment Management Inc. increased its holdings in Digi International by 6.6% in the 4th quarter. Hillsdale Investment Management Inc. now owns 193,155 shares of the technology company’s stock worth $8,362,000 after acquiring an additional 11,900 shares in the last quarter. Finally, Legato Capital Management LLC raised its position in Digi International by 183.1% during the fourth quarter. Legato Capital Management LLC now owns 17,436 shares of the technology company’s stock worth $755,000 after acquiring an additional 11,276 shares during the period. Hedge funds and other institutional investors own 95.90% of the company’s stock.

Digi International Trading Up 11.2%

The company has a debt-to-equity ratio of 0.21, a current ratio of 1.11 and a quick ratio of 0.77. The firm has a market capitalization of $3.05 billion, a PE ratio of 72.11 and a beta of 0.97. The company’s fifty day simple moving average is $68.60 and its 200-day simple moving average is $57.86.

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.