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DGIIDigi International Inc.Sell4.9·$66.18-1.58%
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Digi International Inc. (DGII) Stock Analysis

SellVALUE-TRAP 1/5Moderate Confidence

Technology · Communication Equipment

Sell if holding. Analyst target reached at $66.18 — A.R:R is negative (-1.1) — 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

$66.18+4.8% A.UpsideScore 4.9/10#14 of 21 Communication Equipment
QualityF-score8 / 9FCF yield5.08%
Stop $61.55Target $69.37(resistance)A.R:R -1.1:1
Analyst target$68.50+3.5%6 analysts
$69.37our TP
$66.18price
$68.50mean
$50
$78

Sell if holding. Analyst target reached at $66.18 — A.R:R is negative (-1.1) — 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: No clear chart pattern; technical signals are mixed. Score 4.9/10, moderate confidence.

Passes 6/9 gates (positive momentum, clean insider activity, news events none recent, earnings proximity 57d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: aggressive.

TrendMatrix Research · upcoming catalyst calendar

Upcoming dated catalysts

Wed, Aug 5, 202657d to earnings· next earnings call

Thesis

Rewards
Strong earnings beat streak (4/4)
Wide economic moat
Risks
Analyst target reached - limited upside remaining
Sector modifier (Technology): -0.8
Weak overall score: 4.9/10

Key Metrics

P/E (TTM)59.5
P/E (Fwd)24.3
Mkt Cap$2.5B
EV/EBITDA25.6
Profit Mgn9.1%
ROE6.8%
Rev Growth25.1%
Beta0.98
DividendNone
Rating analysts12

Quality Signals

Piotroski F8/9MoatWide

Options Flow

P/C0.46bullish
IV70%elevated
Max Pain$35-47.1% vs spot

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 5.02LOW
    Compensation 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.

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Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.

Methodology · Editorial policy & full disclaimer

Rating Breakdown

2 floor-breakers

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ev Ebitda
0.0
Peg Ratio
1.5
Pe
2.0
Analyst Target
4.0
Forward Pe
5.2
Ps
6.7
Forward P/E: 24.3xPEG: 6.74

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Value Rank
4.2
Quality Rank
5.2
Growth Rank
6.3
GatesA.R:R -1.1=NEGATIVEMomentum 5.3<5.5 (soft — BUY_NOW allowed but watch)Executive change: officer departure/appointmentMomentum 5.3>=4.5Insider activity: OKNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 57d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
60 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $60.44Resistance $70.79

Price Targets

$62
$69
A.Upside+4.8%
A.R:R-1.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-10.0% upside)
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-05 (57d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DGII stock a buy right now?

Sell if holding. Analyst target reached at $66.18 — A.R:R is negative (-1.1) — 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: No clear chart pattern; technical signals are mixed. Prior stop was $61.55. Score 4.9/10, moderate confidence.

What is the DGII stock price target?

Take-profit target: $69.37 (+4.8% upside). Prior stop was $61.55. Stop-loss: $61.55.

What are the risks of investing in DGII?

Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Weak overall score: 4.9/10.

Is DGII overvalued or undervalued?

Digi International Inc. trades at a P/E of 59.5 (forward 24.3). TrendMatrix value score: 3.3/10. Verdict: Sell.

What do analysts say about DGII?

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.

Related stocks: VISN (Vistance Networks, Inc.) · VIAV (Viavi Solutions Inc.) · GILT (Gilat Satellite Networks Ltd.) · ZBRA (Zebra Technologies Corporation) · BDC (Belden Inc)
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