Digi International Inc. (NASDAQ:DGII) Receives Consensus Recommendation of “Hold” from Brokerages

Digi International Inc. (NASDAQ:DGII) has been assigned a consensus rating of “Hold” from the seven analysts that are currently covering the company, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and four have given a buy recommendation to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $49.80.

A number of brokerages have issued reports on DGII. Wall Street Zen upgraded Digi International from a “buy” rating to a “strong-buy” rating in a research note on Saturday, January 31st. Craig Hallum reaffirmed a “buy” rating and issued a $50.00 price objective on shares of Digi International in a research note on Thursday, February 5th. Zacks Research cut Digi International from a “hold” rating to a “strong sell” rating in a research report on Tuesday, February 10th. Stephens lifted their target price on Digi International from $50.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday, January 2nd. Finally, Piper Sandler boosted their price target on Digi International from $41.00 to $46.00 and gave the stock a “neutral” rating in a report on Monday, January 5th.

Digi International Price Performance

Shares of NASDAQ:DGII opened at $49.07 on Friday. The company has a market capitalization of $1.85 billion, a P/E ratio of 43.81 and a beta of 0.79. Digi International has a 1-year low of $22.39 and a 1-year high of $51.78. The firm’s 50 day simple moving average is $46.80 and its two-hundred day simple moving average is $41.94. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 0.90.

Digi International (NASDAQ:DGII) last announced its quarterly earnings data on Wednesday, February 4th. The technology company reported $0.56 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.55 by $0.01. Digi International had a net margin of 9.45% and a return on equity of 10.93%. The firm had revenue of $122.46 million during the quarter, compared to analysts’ expectations of $115.90 million. During the same period in the prior year, the company posted $0.45 earnings per share. The company’s revenue for the quarter was up 17.9% compared to the same quarter last year. Digi International has set its Q2 2026 guidance at 0.560-0.590 EPS. Research analysts expect that Digi International will post 1.68 EPS for the current fiscal year.

Insider Activity

In other news, Director Satbir Khanuja sold 6,000 shares of Digi International stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $46.00, for a total transaction of $276,000.00. Following the sale, the director owned 85,298 shares in the company, valued at $3,923,708. This trade represents a 6.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, VP James E. Freeland sold 1,355 shares of the business’s stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $45.84, for a total transaction of $62,113.20. Following the completion of the transaction, the vice president directly owned 19,987 shares in the company, valued at $916,204.08. This trade represents a 6.35% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 13,455 shares of company stock worth $616,357 over the last quarter. Insiders own 3.40% of the company’s stock.

Institutional Trading of Digi International

Several hedge funds have recently bought and sold shares of the stock. SG Americas Securities LLC purchased a new position in shares of Digi International during the second quarter valued at about $196,000. Hillsdale Investment Management Inc. purchased a new stake in shares of Digi International in the second quarter worth about $4,293,000. Rhumbline Advisers lifted its position in shares of Digi International by 3.6% in the second quarter. Rhumbline Advisers now owns 107,050 shares of the technology company’s stock worth $3,732,000 after buying an additional 3,722 shares in the last quarter. Ameriprise Financial Inc. lifted its position in shares of Digi International by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company’s stock worth $22,736,000 after buying an additional 46,659 shares in the last quarter. Finally, Lazard Asset Management LLC boosted its stake in Digi International by 25.1% during the second 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 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.