Digi International Inc. (DGII) Stock Analysis
Technology · Communication Equipment
Sell if holding. At $69.01, A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: manufacturer in China; Concentration risk — Supplier: single-sourced suppliers.
Digi International provides IoT connectivity products and managed solutions through two segments: IoT Products & Services (cellular routers, embedded modules, console servers for OEMs and enterprises) and IoT Solutions (SmartSense condition monitoring and Ventus... Read more
Sell if holding. At $69.01, A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: manufacturer in China; Concentration risk — Supplier: single-sourced suppliers. Chart setup: No clear chart pattern; technical signals are mixed. 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 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated 2026-06-15Recent Developments — Digi International Inc.
Latest news
- NEWS DGII (Digi) posts narrow Q1 2026 EPS beat, shares dip 0.24 percent on muted investor sentiment. - Consensus Beat - Newse — Newser positive
- NEWS Digi International (DGII) Projected to Post Quarterly Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS Should Digi’s Portfolio-Wide FIPS 140-3 Security Upgrade Require Action From Digi International (DGII) Investors? - Sahm — Sahm positive
- NEWS Digi International (DGII) Achieves Compliance in Device Security - GuruFocus — GuruFocus positive
- NEWS Digi International (DGII) Surged on Strong Earnings Report - Yahoo Finance — Yahoo Finance positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
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'
- HIGHSuppliermanufacturer in China10-K Item 1A: 'Ventus relies almost exclusively on a manufacturer in China for the production of the hardware it provides to its customers'
- HIGHSuppliersingle-sourced suppliers10-K Item 1: 'We have several single-sourced supplier relationships, either because alternative sources are not available or because the relationship is advantageous to us'
- MEDIUMCustomerfewer than twenty customers10-K Item 1A: 'its business historically has been significantly concentrated on its relationships with fewer than twenty customers'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $69.01, A.R:R is negative (-0.7) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Supplier: manufacturer in China; Concentration risk — Supplier: single-sourced suppliers. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $64.18. Score 5.1/10, moderate confidence.
Take-profit target: $69.37 (+0.5% upside). Prior stop was $64.18. Stop-loss: $64.18.
Concentration risk — Supplier: manufacturer in China; Concentration risk — Supplier: single-sourced suppliers; Analyst target reached - limited upside remaining.
Digi International Inc. trades at a P/E of 60.8 (forward 24.5). TrendMatrix value score: 3.2/10. Verdict: Sell.
12 analysts cover DGII with a consensus score of 4.1/5. Average price target: $72.
What does Digi International Inc. do?Digi International provides IoT connectivity products and managed solutions through two segments: IoT Products &...
Digi International provides IoT connectivity products and managed solutions through two segments: IoT Products & Services (cellular routers, embedded modules, console servers for OEMs and enterprises) and IoT Solutions (SmartSense condition monitoring and Ventus managed-network-as-a-service). IoT Solutions ARR was $120 million and IoT Products & Services ARR was $32 million as of September 30, 2025, with 913 employees globally.