Digi International (NASDAQ:DGII) Sets New 1-Year High on Better-Than-Expected Earnings

Shares of Digi International Inc. (NASDAQ:DGII) hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $44.79 and last traded at $41.58, with a volume of 56286 shares changing hands. The stock had previously closed at $35.97.

The technology company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.05. Digi International had a return on equity of 10.96% and a net margin of 10.14%.The firm had revenue of $114.34 million for the quarter, compared to analyst estimates of $110.75 million. During the same quarter in the prior year, the firm posted $0.52 earnings per share. The company’s quarterly revenue was up 8.8% on a year-over-year basis. Digi International has set its Q1 2026 guidance at EPS. FY 2026 guidance at EPS.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on DGII. B. Riley upped their target price on shares of Digi International from $35.00 to $40.00 and gave the company a “buy” rating in a report on Thursday, August 7th. Craig Hallum upgraded shares of Digi International from a “hold” rating to a “buy” rating and upped their price target for the company from $30.00 to $45.00 in a research report on Thursday. Piper Sandler upped their target price on shares of Digi International from $30.00 to $33.00 and gave the stock a “neutral” rating in a report on Thursday, August 7th. Stephens reiterated an “overweight” rating and set a $50.00 target price on shares of Digi International in a research report on Tuesday, August 19th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Digi International in a report on Wednesday, October 8th. Four investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, Digi International currently has an average rating of “Moderate Buy” and a consensus target price of $42.00.

Hedge Funds Weigh In On Digi International

Several institutional investors have recently modified their holdings of DGII. Jones Financial Companies Lllp increased its position in shares of Digi International by 9,344.7% during the first quarter. Jones Financial Companies Lllp now owns 108,614 shares of the technology company’s stock worth $3,023,000 after purchasing an additional 107,464 shares in the last quarter. Herald Investment Management Ltd bought a new position in Digi International during the 1st quarter worth $2,226,000. Pacer Advisors Inc. lifted its position in Digi International by 2,297.0% in the first quarter. Pacer Advisors Inc. now owns 238,019 shares of the technology company’s stock worth $6,624,000 after purchasing an additional 228,089 shares during the period. Geneva Capital Management LLC increased its holdings in shares of Digi International by 5.9% in the 2nd quarter. Geneva Capital Management LLC now owns 1,730,417 shares of the technology company’s stock valued at $60,322,000 after purchasing an additional 95,756 shares during the period. Finally, Farther Finance Advisors LLC raised its holdings in Digi International by 5,263.2% in the 2nd quarter. Farther Finance Advisors LLC now owns 2,038 shares of the technology company’s stock worth $71,000 after acquiring an additional 2,000 shares during the period. Institutional investors and hedge funds own 95.90% of the company’s stock.

Digi International Price Performance

The company’s 50-day moving average is $36.71 and its 200-day moving average is $34.35. The stock has a market cap of $1.46 billion, a price-to-earnings ratio of 34.48, a price-to-earnings-growth ratio of 1.23 and a beta of 0.93. The company has a quick ratio of 1.03, a current ratio of 1.43 and a debt-to-equity ratio of 0.06.

About Digi International

Digi International Inc provides business and mission-critical Internet of Things (IoT) products, services, and solutions in the United States, Europe, the Middle East, Africa, and internationally. The company operates in two segments, IoT Products & Services, and IoT Solutions. It offers cellular routers for mission-critical wireless connectivity; cellular modules to embed cellular communications abilities into the products to deploy and manage intelligent and secure cellular connected products; console servers to provide secure and remote access to network equipment in data centers and at edge locations; and radio frequency products, including embedded wireless modules, off-the-shelf gateways, modems, and adapters under the Digi XBee brand.