B. Riley Financial Forecasts Strong Price Appreciation for Digi International (NASDAQ:DGII) Stock

Digi International (NASDAQ:DGII) had its price target upped by investment analysts at B. Riley Financial from $78.00 to $86.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has a “buy” rating on the technology company’s stock. B. Riley Financial’s target price would suggest a potential upside of 5.54% from the company’s previous close.

Other equities analysts have also issued reports about the company. Stephens lifted their price objective on Digi International from $65.00 to $75.00 and gave the stock an “overweight” rating in a research note on Tuesday, May 12th. Weiss Ratings raised Digi International from a “hold (c)” rating to a “hold (c+)” rating in a report on Monday. Zacks Research downgraded Digi International from a “strong-buy” rating to a “hold” rating in a research report on Monday. Piper Sandler upped their price target on Digi International from $46.00 to $63.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Finally, Craig Hallum increased their price objective on Digi International from $50.00 to $75.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $73.80.

Digi International Stock Performance

DGII stock traded up $8.73 during midday trading on Thursday, hitting $81.48. 72,997 shares of the company traded hands, compared to its average volume of 332,439. Digi International has a twelve month low of $30.69 and a twelve month high of $79.80. The company has a quick ratio of 0.77, a current ratio of 1.11 and a debt-to-equity ratio of 0.21. The business has a 50 day simple moving average of $68.60 and a 200-day simple moving average of $57.86. The stock has a market capitalization of $3.07 billion, a price-to-earnings ratio of 72.11 and a beta of 0.97.

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

Insider Activity

In other Digi International news, VP James E. Freeland sold 450 shares of the company’s stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $68.00, for a total transaction of $30,600.00. Following the sale, the vice president directly owned 19,219 shares of the company’s stock, valued at approximately $1,306,892. This represents a 2.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO James J. Loch sold 100,000 shares of Digi International stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $69.44, for a total value of $6,944,000.00. Following the completion of the transaction, the chief financial officer owned 167,589 shares of the company’s stock, valued at approximately $11,637,380.16. The trade was a 37.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 121,008 shares of company stock valued at $8,320,222 in the last ninety days. 3.40% of the stock is currently owned by corporate insiders.

Institutional Trading of Digi International

Hedge funds and other institutional investors have recently modified their holdings of the stock. Leuthold Group LLC raised its position in Digi International by 0.5% in the 4th quarter. Leuthold Group LLC now owns 56,738 shares of the technology company’s stock valued at $2,456,000 after buying an additional 264 shares during the last quarter. Russell Investments Group Ltd. grew its position in shares of Digi International by 8.1% in the 4th quarter. Russell Investments Group Ltd. now owns 3,649 shares of the technology company’s stock valued at $158,000 after acquiring an additional 273 shares during the period. Brooklyn Investment Group grew its position in shares of Digi International by 5.9% in the 4th quarter. Brooklyn Investment Group now owns 5,983 shares of the technology company’s stock valued at $265,000 after acquiring an additional 331 shares during the period. Lazard Asset Management LLC increased its stake in shares of Digi International by 25.1% during the 2nd quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock worth $58,000 after purchasing an additional 339 shares during the last quarter. Finally, GAMMA Investing LLC raised its holdings in shares of Digi International by 17.0% in the 2nd quarter. GAMMA Investing LLC now owns 2,576 shares of the technology company’s stock valued at $193,000 after purchasing an additional 374 shares during the period. Institutional investors and hedge funds own 95.90% of the company’s stock.

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

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.