DGII Stock Analysis: Buy, Sell, or Hold?
DGII - Digi International Inc
$46.82
-0.65 (-1.37%)
▼
5d:
-5.6%
30d:
-4.1%
90d:
+5.24%
HOLD
LOW Confidence
Analysis Updated: Mar 30, 2026 12:00 AM ET
Earnings: May 06, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DGII shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: DGII shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$72.47
Based on 8.9% avg growth
INTRINSIC VALUE TODAY
$45.00
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 18.1x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGII is currently trading at $46.82, which is considered oversold relative to its 30-day fair value range of $48.43 to $50.52. The stock's valuation (Forward PE: 17.8) is in line with its historical norms (18.1). Remarkably, the market is currently pricing in an annual earnings decline of 0.6% over the next few years. This pessimistic expectation contrasts with the company's recent 14.8% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DGII is in a strong uptrend. The price is currently testing key support at $46.45. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, DGII is in a strong uptrend. The price is currently testing key support at $46.45. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. In the options market, Implied Volatility is low (0th percentile), suggesting options premiums are relatively cheap. This makes it an attractive time for long options strategies if you have a directional bias. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$48.43 -
$50.52
Company Quality Score
55/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
79.6%
Protect Your Profits
Holding DGII? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- BULLISH: Options cheap (IV 0th percentile)
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($50.50)
- CAUTION: Recommendation downgraded due to -5.6% 5-day decline
Fair Price Analysis
30-Day Fair Range
$48.43 -
$50.52
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$4.69
(10.0%)
Support & Resistance Levels
Support Level
$46.45
Resistance Level
$51.71
Current Trend
Strong Uptrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
17.82
Wall Street Target
$50.50
(+7.9%)
Revenue Growth (YoY)
17.9%
Earnings Growth (YoY)
14.8%
Profit Margin
9.4%
Valuation Discount vs History
-0.6% cheaper
PE vs Historical
17.8 vs 18.1
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.6%
(market-implied from PE analysis)
1-Year Target
$46.54
(-1%)
2-Year Target
$46.26
(-1%)
3-Year Target
$45.98
(-2%)
3-Yr Target (if PE normalizes)
(PE: 18→18)
$46.69
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.4, Growth: 13.7%)
$86.31
(+84%)
Base:
(SPY PE: 17.8, Growth: 13.7%)
$68.84
(+47%)
Bear:
(PE: 15.2, Growth: 13.7%)
$58.51
(+25%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (43x PE), but valuation improves significantly next year (18x PE) as earnings recover.
Trailing PE: 42.67 | Current EPS (TTM): $1.12
Bull Case
$105.14
(+112%)
Analyst growth 100.0%, PE expands to 46.9
Base Case
$95.58
(+93%)
Market implied 100.0%, PE stable at 42.7
Bear Case
$32.50
(-35%)
Severe decline -20.0%, PE contracts to 36.3
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 17.8 to 18.1
Stabilization Target:
$47.54
(+1.5%)
PE Expansion Potential:
+1.5%
Share & Embed Analysis
Last updated: March 30, 2026 9:07 PM ET
Data refreshes hourly during market hours. Next update: 10:07 PM
Data refreshes hourly during market hours. Next update: 10:07 PM
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Technical Signals Check
Is DGII showing a specific setup today?
Insider Activity (6 Months)
0
Buys
9
Sells
Net
INSIDERS SELLING
Recent Transactions
David H Sampsell
SELL
5000 shares
2026-02-10
James E Freeland
SELL
1355 shares
2026-02-10
Satbir Khanuja
SELL
6000 shares
2026-02-10
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Advanced DGII Option Strategies
Professional options setups generated by AI based on today's DGII price and gamma walls.
