Should I Buy DGII? DGII 2026 Analysis

Should You Buy Digi International Inc (DGII) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

44.160

1 Day change

-1.25%

52 Week Range

48.000

Analysis Updated At

2026/02/04

Should I buy Analysis is updated weekly. For real time "Should I Buy" analysis, please sign up to get free answers.

Buy now: trend is bullish (stacked moving averages) and sentiment into earnings is constructive (upward estimate revisions + call-heavy positioning).
Near-term trade focus: price is sitting just above the pivot ~44.09 with upside tests likely toward 45.64 (R1) and 46.60 (R2) if earnings sentiment holds.
Main reason it’s a buy right now: the setup favors an earnings-driven move higher (historical beat consistency + raised targets), and you indicated no desire to wait for a “perfect” entry.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend: Bullish structure with SMA_5 > SMA_20 > SMA_200, indicating an established uptrend.
Momentum (MACD): histogram +0.156 and above zero, but positively contracting → bullish momentum is slowing slightly, so a catalyst (earnings) matters.
RSI (6): 55.98 (neutral) → not overbought; still room for continuation.
Key levels: Pivot 44.09 (must hold for near-term bullish control); resistance at 45.64 (R1) then 46.60 (R2); support at 42.55 (S1).
Pattern-based odds (given): model suggests +1.47% next week and +3.6% next month, supportive of a buy bias.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Open interest is heavily call-skewed (PCR 0.1; calls OI 165 vs puts OI 16) → bullish/optimistic positioning.
Volume: reported 0 options volume today → sentiment is inferred mostly from OI, not active day-of trading.
Volatility: IV 30D 58.9% vs HV 34.97% → options are pricing a meaningful move (consistent with earnings).
IV context: IV percentile ~40.8, IV rank ~17.8 → not extreme versus its own history, despite being high versus realized volatility.

Technical Summary

Sell

Buy

Positive Catalysts

- Earnings catalyst (After Hours 2026-02-04): consensus EPS 0.55 and revenue ~$115.63M; history shows frequent beats (EPS beat rate cited at 100% over 2 years).
- Revisions trend: last 3 months saw 3 upward EPS revisions and 4 upward revenue revisions → improving expectations.
- Strategy narrative: management targeting double-digit ARR/revenue/EBITDA growth into 2026, with Jolt integration as a growth driver.
- Street commentary: multiple firms raised price targets recently; bullish notes highlight ARR momentum, margin expansion, and operating leverage.

Neutral/Negative Catalysts

- Overhead resistance: price is below/near key resistance 45.64–46.60, which can cap upside if earnings don’t impress.
- Momentum cooling: MACD remains positive but is contracting, implying the trend could need a fresh catalyst to accelerate.
- Recent profitability pressure: last reported quarter showed EPS and net income down YoY, which can re-emerge as a concern if guidance disappoints.
- Options imply a big move: IV is elevated vs realized volatility, meaning expectations are high going into the event.

Financial Performance

Latest reported quarter: 2025/Q4
- Revenue $114.34M, +8.84% YoY (growth improving).
- Gross margin 63.91%, +4.53% YoY (quality of revenue/mix improving).
- Net income $9.98M, -15.86% YoY.
- EPS $0.26, -18.75% YoY (profitability dipped despite better margin—watch operating costs and mix).
Overall: top-line and gross margin trends are positive, but bottom-line growth needs to re-accelerate to justify further multiple expansion.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent rating/target trend (net positive):
- Stephens (2026-01-02): Overweight, PT raised $50 → $55 (cites ARR execution and continued double-digit ARR growth).
- Piper Sandler (2026-01-05): Neutral, PT raised $41 → $46 (more cautious, but acknowledges improving outlook).
- Craig-Hallum (2025-11-13): upgraded to Buy from Hold, PT $30 → $45.
- B. Riley (2025-11-13): Buy, PT $45 → $48.
- Roth (2025-11-13): Buy, PT $45 → $50.
Wall Street pros: improving ARR momentum, expanding gross margin, operating leverage narrative, and multiple catalysts (AI/networking refresh + Jolt).
Wall Street cons: some skepticism remains (Neutral stance from Piper) around model visibility and whether guidance/execution can consistently support higher multiples.

5 Analyst Rating

Wall Street analysts forecast DGII stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DGII is 48.8 USD with a low forecast of 45 USD and a high forecast of 55 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

1 Hold

0 Sell

Strong Buy

Current: 44.720

Low

Averages

48.8

High

Current: 44.720

Low

Averages

48.8

High

Craig-Hallum

Anthony Stoss

Buy

maintain

$45 -> $50

AI Analysis

2026-02-05

New

Reason

Craig-Hallum

Anthony Stoss

Price Target

$45 -> $50

AI Analysis

2026-02-05

New

maintain

Buy

Reason

Craig-Hallum analyst Anthony Stoss raised the firm's price target on Digi International to $50 from $45 and keeps a Buy rating on the shares. The firm is confident in Digi following the tariff pause and highlights management confidence around acquisition integration and strong growth in their Cellular Solutions business. The company reported a strong December quarter and March guide, and the company raised their FY26 guidance, though Craig-Hallum believes it was conservative.

Piper Sandler

Neutral

maintain

$41 -> $46

2026-01-05

Reason

Piper Sandler

Price Target

$41 -> $46

2026-01-05

maintain

Neutral

Reason

Piper Sandler raised the firm's price target on Digi International to $46 from $41 on a higher multiple. The firm keeps a Neutral rating on the shares.

Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DGII

Unlock Now

DGII Should I Buy

DGII Should I Buy

Should You Buy Digi International Inc (DGII) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

People Also Watch