Digi International (NASDAQ:DGII) Hits New 52-Week High on Strong Earnings

Digi International Inc. (NASDAQ:DGII) reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $78.64 and last traded at $79.7950, with a volume of 49769 shares changing hands. The stock had previously closed at $72.75.

The technology company reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.66 by $0.09. Digi International had a net margin of 9.10% and a return on equity of 11.28%. The firm had revenue of $138.67 million for the quarter, compared to analyst estimates of $132.57 million. During the same period last year, the company posted $0.53 EPS. Digi International’s quarterly 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.

Digi International News Summary

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

Wall Street Analysts Forecast Growth

Several analysts recently commented on DGII shares. Roth Capital reiterated a “buy” rating and set a $70.00 price target on shares of Digi International in a research report on Thursday, May 7th. B. Riley Financial raised their price objective on Digi International from $78.00 to $86.00 and gave the company a “buy” rating in a report on Thursday. Stephens lifted their target price on shares of 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 upgraded shares of Digi International from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday. Finally, Zacks Research lowered shares of Digi International from a “strong-buy” rating to a “hold” rating in a research report on Monday. Four equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $73.80.

Insider Activity

In related 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 value of $30,600.00. Following the completion of the sale, the vice president 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 document filed with the SEC, which can be accessed through this link. Also, CFO James J. Loch sold 100,000 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $69.44, for a total transaction of $6,944,000.00. Following the sale, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 121,008 shares of company stock worth $8,320,222. Company insiders own 3.40% of the company’s stock.

Institutional Trading of Digi International

Several institutional investors have recently made changes to their positions in DGII. USA Financial Formulas lifted its holdings in Digi International by 109.3% in the first quarter. USA Financial Formulas now owns 946 shares of the technology company’s stock valued at $46,000 after acquiring an additional 494 shares during the last quarter. Lazard Asset Management LLC raised its position in Digi International by 25.1% in the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock valued at $58,000 after purchasing an additional 339 shares during the period. Russell Investments Group Ltd. raised its position in Digi International by 1,530.9% in the third quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company’s stock valued at $123,000 after purchasing an additional 3,169 shares during the period. GAMMA Investing LLC lifted its stake 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 last quarter. Finally, FourThought Financial Partners LLC purchased a new position in shares of Digi International during the 4th quarter worth $204,000. Hedge funds and other institutional investors own 95.90% of the company’s stock.

Digi International Trading Up 11.2%

The business has a fifty day moving average price of $68.60 and a two-hundred day moving average price of $57.86. The company has a current ratio of 1.11, a quick ratio of 0.77 and a debt-to-equity ratio of 0.21. The firm has a market capitalization of $3.05 billion, a PE ratio of 72.11 and a beta of 0.97.

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.