Digi International (NASDAQ:DGII) Stock Price Expected to Rise, B. Riley Financial Analyst Says

Digi International (NASDAQ:DGII) had its price objective raised by equities researchers at B. Riley Financial from $78.00 to $86.00 in a report released on Thursday,Benzinga reports. The firm presently has a “buy” rating on the technology company’s stock. B. Riley Financial’s target price would indicate a potential upside of 5.54% from the company’s previous close.

A number of other research analysts have also recently commented on DGII. Zacks Research cut Digi International from a “strong-buy” rating to a “hold” rating in a research note on Monday. Roth Capital reaffirmed a “buy” rating and issued a $70.00 target price on shares of Digi International in a report on Thursday, May 7th. Weiss Ratings upgraded Digi International from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday. Craig Hallum lifted their price target on Digi International from $50.00 to $75.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Finally, Stephens upped 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. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $73.80.

Digi International Price Performance

Shares of NASDAQ DGII traded up $8.73 during midday trading on Thursday, reaching $81.48. The company’s stock had a trading volume of 72,997 shares, compared to its average volume of 332,439. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.77 and a current ratio of 1.11. The company has a market cap of $3.07 billion, a P/E ratio of 72.11 and a beta of 0.97. The business’s 50 day moving average price is $68.60 and its two-hundred day moving average price is $57.86. Digi International has a fifty-two week low of $30.69 and a fifty-two week high of $79.80.

Digi International (NASDAQ:DGII) last posted its quarterly earnings data on Wednesday, August 5th. The technology company reported $0.75 earnings per share 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 business had revenue of $138.67 million during the quarter, compared to analysts’ expectations of $132.57 million. During the same quarter in the prior year, the business posted $0.53 earnings per share. Digi International’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. On average, analysts forecast that Digi International will post 2.11 EPS for the current fiscal year.

Insider Activity

In other news, VP Terrence G. Schneider sold 14,182 shares of the firm’s stock in a transaction that occurred on 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 in the company, valued at approximately $1,755,657.99. This trade represents a 34.64% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP James E. Freeland sold 450 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $68.00, for a total transaction of $30,600.00. Following the completion of the transaction, the vice president directly owned 19,219 shares of the company’s stock, valued at approximately $1,306,892. The trade was a 2.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 121,008 shares of company stock worth $8,320,222. Corporate insiders own 3.40% of the company’s stock.

Hedge Funds Weigh In On Digi International

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Leuthold Group LLC lifted its stake in 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. Russell Investments Group Ltd. raised its holdings in shares of Digi International by 8.1% during the 4th quarter. Russell Investments Group Ltd. now owns 3,649 shares of the technology company’s stock valued at $158,000 after buying an additional 273 shares in the last quarter. Brooklyn Investment Group raised its holdings in shares of Digi International by 5.9% during the 4th quarter. Brooklyn Investment Group now owns 5,983 shares of the technology company’s stock valued at $265,000 after buying an additional 331 shares in the last quarter. Lazard Asset Management LLC lifted its position 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 worth $58,000 after buying an additional 339 shares during the last quarter. Finally, GAMMA Investing LLC boosted its stake in Digi International by 17.0% in the second 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. Hedge funds and other institutional investors own 95.90% of the company’s stock.

Digi International News Roundup

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.