DGII Stock Analysis: Buy, Sell, or Hold?
DGII - Digi International Inc
$43.07
-2.22 (-4.90%)
▼
BUY
MODERATE Confidence
Last Updated: January 30, 2026
Earnings: Feb 04, 2026
3d
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DGII shows positive signals but monitor for confirmation. Market pricing in 0.9% decline. Moderate conviction.
💡 BUY OPPORTUNITY: DGII shows positive signals but monitor for confirmation. Market pricing in 0.9% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$63.60
Based on 6.4% avg growth
INTRINSIC VALUE TODAY
$39.49
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 18.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGII is currently trading at $43.07, which is considered fair relative to its 30-day fair value range of $42.42 to $44.40. The stock's valuation (Forward PE: 17.5) is in line with its historical norms (18.0). Remarkably, the market is currently pricing in an annual earnings decline of 0.9% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, DGII is in a strong uptrend. The price is currently testing key support at $42.10. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 4.9% recently.
Market Sentiment: DGII has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DGII is in a strong uptrend. The price is currently testing key support at $42.10. A bounce from this level would confirm strength, while a break below could signal further downside. Short-term momentum is weak, with the stock down 4.9% recently.
Market Sentiment: DGII has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$42.42 -
$44.40
Company Quality Score
60/100
(HOLD)
Options IV Signal
50th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
73.1%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Options fairly priced (IV 50th percentile)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-4.9%)
- NEUTRAL: Near Wall St target ($48.17)
Fair Price Analysis
30-Day Fair Range
$42.42 -
$44.40
Current vs Fair Value
FAIR
Expected Move (7 Days)
±$2.31
(5.4%)
Support & Resistance Levels
Support Level
$42.10
Resistance Level
$45.84
Current Trend
Strong Uptrend
Fundamental Context
Forward P/E (Next Year Est.)
17.47
Wall Street Target
$48.17
(+6.4%)
Revenue Growth (YoY)
8.8%
Earnings Growth (YoY)
-18.2%
Profit Margin
9.5%
Valuation Discount vs History
-0.9% cheaper
PE vs Historical
17.5 vs 18.0
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-0.9%
(market-implied from PE analysis)
1-Year Target
$44.88
(-1%)
2-Year Target
$44.48
(-2%)
3-Year Target
$44.08
(-3%)
3-Yr Target (if PE normalizes)
(PE: 17→18)
$45.42
(+0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 22.3, Growth: 8.8%)
$74.41
(+64%)
Base:
(SPY PE: 17.5, Growth: 8.8%)
$58.29
(+29%)
Bear:
(PE: 14.8, Growth: 8.8%)
$49.55
(+9%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (42x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 41.57 | Current EPS (TTM): $1.08
Bull Case
$98.78
(+129%)
Analyst growth 100.0%, PE expands to 45.7
Base Case
$89.80
(+109%)
Market implied 100.0%, PE stable at 41.6
Bear Case
$30.53
(-29%)
Severe decline -20.0%, PE contracts to 35.3
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 17.5 to 18.0
Stabilization Target:
$46.66
(+3.0%)
PE Expansion Potential:
+3.0%
Last updated: January 31, 2026 2:33 PM ET
Data refreshes hourly during market hours. Next update: 3:33 PM
Data refreshes hourly during market hours. Next update: 3:33 PM
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Technical Signals Check
Is DGII showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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Advanced DGII Option Strategies
Professional options setups generated by AI based on today's DGII price and gamma walls.
