Digi International Inc. (DGII) Stock Analysis
Breakout setup
Technology · Communication Equipment
Sell if holding. Analyst target reached at $62.86 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8.
Digi International provides IoT connectivity products (embedded modules, routers, console servers) through its IoT Products & Services segment and subscription-based IoT Solutions (SmartSense condition monitoring, Ventus managed network-as-a-service) representing ~25% of... Read more
Sell if holding. Analyst target reached at $62.86 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 66, MACD bullish. Score 5.1/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, no SEC red flags, news events none recent, earnings proximity 79d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent Developments — Digi International Inc.
Latest news
- DGII (Digi) posts narrow Q1 2026 EPS beat, shares dip 0.24 percent on muted investor sentiment. - Consensus Beat - Newse — Newser positive
- Digi International (DGII) Projected to Post Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- Should Digi’s Portfolio-Wide FIPS 140-3 Security Upgrade Require Action From Digi International (DGII) Investors? - Sahm — Sahm positive
- Digi International (DGII) Achieves Compliance in Device Security - GuruFocus — GuruFocus positive
- Digi International (DGII) Surged on Strong Earnings Report - Yahoo Finance — Yahoo Finance positive
Generated 2026-05-20T21:06:21Z.
Thesis
Key Metrics
Quality Signals
Concentration Risks(10-K Item 1A)
- LOWCustomerone distributor customer13%10-K Item 1: 'We had one distributor customer of Digi's IoT Products & Services segment that represented 13% of consolidated revenue for the twelve months ended September 30, 2025'
Material Events(8-K, last 90d)
- 2026-03-05Item 5.02LOWCompensation Committee approved supplemental PSU awards on February 27, 2026, for CFO James Loch and other officers, tied to software integration and program migration milestones through FY2026-2028. Compensatory arrangement only; no departures or appointments.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer
Rating Breakdown
1 floor-breaker
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $62.86 — A.R:R is negative (-0.3) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 66, MACD bullish. Prior stop was $58.46. Score 5.1/10, moderate confidence.
Take-profit target: $68.41 (+8.8% upside). Prior stop was $58.46. Stop-loss: $58.46.
Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Expensive valuation.
Digi International Inc. trades at a P/E of 54.9 (forward 22.4). TrendMatrix value score: 3.5/10. Verdict: Sell.
12 analysts cover DGII with a consensus score of 4.1/5. Average price target: $69.
What does Digi International Inc. do?Digi International provides IoT connectivity products (embedded modules, routers, console servers) through its IoT...
Digi International provides IoT connectivity products (embedded modules, routers, console servers) through its IoT Products & Services segment and subscription-based IoT Solutions (SmartSense condition monitoring, Ventus managed network-as-a-service) representing ~25% of revenues. One distributor customer represented 13% of consolidated revenue in FY2025; no customer exceeded 10% in prior years.