DGII Stock Analysis: Buy, Sell, or Hold?
DGII - Digi International Inc
$65.78
3.75 (6.05%)
▲
5d:
+14.38%
30d:
+20.85%
90d:
+48.96%
HOLD
MODERATE Confidence
Analysis Updated: May 8, 2026 12:00 AM ET
Earnings: May 06, 2026
0d
Smart Money Accumulation
DGII is down 3.2% this week, but smart money is accumulating calls. Top strike: $60 2026-06-18 with 30 OI. Call ratio: 100% View Scanner →
Strength: 6.6/10
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2 traders called DGII this week
100% bullish • 0 bearish
100% bullish • 0 bearish
Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD - EXTENDED: DGII is 11.8% above its trading range ($58.83). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.
📊 HOLD - EXTENDED: DGII is 11.8% above its trading range ($58.83). Fundamentals are solid but entry is stretched. Hold existing positions; wait for pullback to add new shares.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$74.66
Based on 8.5% avg growth
INTRINSIC VALUE TODAY
$46.36
Trading above historical range
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 18.8x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGII is currently trading at $65.78, which is considered extended relative to its 30-day fair value range of $52.19 to $58.83. From a valuation perspective, the stock is trading at a premium (Forward PE: 24.9) compared to its historical average (18.8). At these levels, the market is pricing in 9.7% annual earnings growth. This growth rate appears achievable given the company's track record, suggesting the valuation is rational.
Technical Outlook: Technically, DGII is in a strong uptrend. Immediate support is located at $53.51, while resistance sits at $69.81. The stock is showing strong short-term momentum, up 6.0% recently.
Market Sentiment: DGII has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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. However, the stock is trading significantly above the average Wall Street target of $53.33. 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. Immediate support is located at $53.51, while resistance sits at $69.81. The stock is showing strong short-term momentum, up 6.0% recently.
Market Sentiment: DGII has a strong technical setup (60/100), with favorable trendlines, momentum, and price action for short-term traders. 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. However, the stock is trading significantly above the average Wall Street target of $53.33. 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
EXTENDED
Historical Trading Range
$52.19 -
$58.83
Company Quality Score
65/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
56.9%
Protect Your Profits
DGII is technically overbought (RSI 82). Consider hedging now to protect against a potential pullback while keeping your upside.
View Profit Protection PlanAll Signals
- BEARISH: Price significantly overextended (+11.8% above its trading range)
- BULLISH: Options cheap (IV 0th percentile)
- BULLISH: Strong technical setup (60/100)
- BULLISH: High volume confirmation
- BULLISH: Strong upward momentum (+6.0%)
- BEARISH: Trading 18.9% above Wall St target ($53.33)
- NEUTRAL: Trading at premium valuation - market expects 9.7% growth which is achievable
Trading Range Analysis
30-Day Trading Range
$52.19 -
$58.83
Current vs Trading Range
EXTENDED
Expected Move (7 Days)
±$3.69
(5.6%)
Support & Resistance Levels
Support Level
$53.51
Resistance Level
$69.81
Current Trend
Strong Uptrend
Technical data as of
May 8, 2026
Fundamental Context
Forward P/E (Next Year Est.)
24.85
Wall Street Target
$53.33
(-18.9%)
Revenue Growth (YoY)
17.9%
Earnings Growth (YoY)
14.8%
Profit Margin
9.4%
Valuation Premium vs History
+9.7% premium
PE vs Historical
24.9 vs 18.8
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+9.7%
(market-implied from PE analysis)
1-Year Target
$72.16
(+10%)
2-Year Target
$79.16
(+20%)
3-Year Target
$86.84
(+32%)
3-Yr Target (if PE normalizes)
(PE: 25→19)
PE COMPRESSION
$65.69
(0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 24.9, Growth: 13.0%)
$94.98
(+44%)
Base:
(SPY PE: 21.9, Growth: 13.0%)
$83.84
(+28%)
Bear:
(PE: 18.6, Growth: 13.0%)
$71.27
(+8%)
📈
Valuation based on Current Earnings
Forward PE: 24.51 | Forward EPS (Implied): $2.68
Bull Case
$79.43
(+21%)
Analyst growth 15.0%, PE expands to 25.7
Base Case
$65.78
(0%)
Market implied 0.0%, PE stable at 24.5
Bear Case
$50.32
(-24%)
Severe decline -15.0%, PE contracts to 22.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 10, 2026 3:24 PM ET
Data refreshes hourly during market hours. Next update: 4:24 PM
Data refreshes hourly during market hours. Next update: 4:24 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.
