DGII Stock Analysis: Buy, Sell, or Hold?
DGII - Digi International Inc
$64.22
-1.11 (-1.70%)
▼
5d:
+3.53%
30d:
+18.82%
90d:
+38.73%
HOLD
MODERATE Confidence
Analysis Updated: May 14, 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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1 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: DGII trades at premium valuation expecting 6.9% growth. Hold existing positions but don't chase. Wait for better entry.
📊 HOLD: DGII trades at premium valuation expecting 6.9% growth. Hold existing positions but don't chase. Wait for better entry.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$77.02
Based on 8.0% avg growth
INTRINSIC VALUE TODAY
$47.83
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 19.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGII is currently trading at $64.22, which is considered extended relative to its 30-day fair value range of $53.21 to $60.83. From a valuation perspective, the stock is trading at a premium (Forward PE: 23.2) compared to its historical average (19.0). At these levels, the market is pricing in 6.9% annual earnings growth. This is a high bar to clear, indicating the stock may be priced for perfection.
Technical Outlook: Technically, DGII is in a strong uptrend. Immediate support is located at $56.04, while resistance sits at $69.81.
Market Sentiment: DGII has a strong technical setup (75/100), 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. 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 $56.04, while resistance sits at $69.81.
Market Sentiment: DGII has a strong technical setup (75/100), 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. 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
$53.21 -
$60.83
Company Quality Score
66/100
(BUY)
Volume Confirmation
HIGH
Confidence Score
57.7%
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
- BEARISH: Price extended above range (+5.6% above its trading range)
- BULLISH: Options cheap (IV 0th percentile)
- BULLISH: Strong technical setup (75/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($68.50)
- BEARISH: Market expects 6.9% growth - appears too optimistic based on history
Trading Range Analysis
30-Day Trading Range
$53.21 -
$60.83
Current vs Trading Range
EXTENDED
Expected Move (7 Days)
±$3.61
(5.6%)
Support & Resistance Levels
Support Level
$56.04
Resistance Level
$69.81
Current Trend
Strong Uptrend
Technical data as of
May 14, 2026
Fundamental Context
Forward P/E (Next Year Est.)
23.18
Wall Street Target
$68.50
(+6.7%)
Revenue Growth (YoY)
25.1%
Earnings Growth (YoY)
3.6%
Profit Margin
9.1%
Valuation Premium vs History
+6.9% premium
PE vs Historical
23.2 vs 19.0
STRETCHED
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+6.9%
(market-implied from PE analysis)
1-Year Target
$68.65
(+7%)
2-Year Target
$73.39
(+14%)
3-Year Target
$78.45
(+22%)
3-Yr Target (if PE normalizes)
(PE: 23→19)
PE COMPRESSION
$64.29
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 23.2, Growth: 11.9%)
$89.92
(+40%)
Base:
(SPY PE: 22.0, Growth: 11.9%)
$85.48
(+33%)
Bear:
(PE: 18.7, Growth: 11.9%)
$72.66
(+13%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (28x PE), but valuation improves significantly next year (23x PE) as earnings recover.
Forward PE: 27.55 | Forward EPS (Implied): $2.33
Bull Case
$77.55
(+21%)
Analyst growth 15.0%, PE expands to 28.9
Base Case
$64.22
(0%)
Market implied 0.0%, PE stable at 27.6
Bear Case
$49.13
(-24%)
Severe decline -15.0%, PE contracts to 24.8
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: May 14, 2026 11:17 PM ET
Data refreshes hourly during market hours. Next update: 12:17 AM
Data refreshes hourly during market hours. Next update: 12:17 AM
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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.
