DGII Stock Analysis: Buy, Sell, or Hold?
DGII - Digi International Inc
$74.91
1.30 (1.77%)
▲
5d:
-11.99%
30d:
+13.84%
90d:
+16.96%
WAIT
LOW Confidence
Analysis Updated: Aug 21, 2026 12:00 AM ET
Earnings: Aug 05, 2026
0d
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Interactive Price Chart (1 Month)
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Bottom Line:
⏸️ WAIT FOR STABILIZATION: DGII is down 12.0% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
⏸️ WAIT FOR STABILIZATION: DGII is down 12.0% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$107.25
Based on 10.2% avg growth
INTRINSIC VALUE TODAY
$66.59
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 21.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGII is currently trading at $74.91, which is considered fair relative to its 30-day fair value range of $65.51 to $80.96. From a valuation perspective, the stock is trading at a premium (Forward PE: 23.9) compared to its historical average (21.2). At these levels, the market is pricing in 4.2% 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 $72.36, while resistance sits at $86.02.
Market Sentiment: DGII scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. 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. Wall Street analysts see significant upside, with an average price target of $85.40 (+14.0%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, DGII is in a strong uptrend. Immediate support is located at $72.36, while resistance sits at $86.02.
Market Sentiment: DGII scores 15/100 on our bottoming-setup gauge. Note this measures entry quality, not trend direction — a low score can mean the chart is extended after a strong run (don't chase) or still falling without stabilization; better entries typically come after a pullback toward the 20-day average. 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. Wall Street analysts see significant upside, with an average price target of $85.40 (+14.0%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
FAIR
Historical Trading Range
$65.51 -
$80.96
Company Quality Score
39/100
(SELL)
Volume Confirmation
HIGH
Confidence Score
58.5%
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
- NEUTRAL: Price in fair range
- BULLISH: Options cheap (IV 0th percentile)
- BEARISH: Weak technical setup (15/100)
- BULLISH: High volume confirmation
- BULLISH: Trading below Wall St target ($85.40)
- NEUTRAL: Market pricing in 4.2% annual earnings growth - fairly valued
- WARNING: Composite score 39/100 in the bottom quintile — this cohort historically lags the market
Trading Range Analysis
30-Day Trading Range
$65.51 -
$80.96
Current vs Trading Range
FAIR
Expected Move (7 Days)
±$4.24
(5.7%)
Support & Resistance Levels
Support Level
$72.36
Resistance Level
$86.02
Current Trend
Strong Uptrend
Technical data as of
Aug 21, 2026
Fundamental Context
Forward P/E (Next Year Est.)
23.92
Wall Street Target
$85.40
(+14.0%)
Revenue Growth (YoY)
29.0%
Earnings Growth (YoY)
48.1%
Profit Margin
9.6%
Valuation Premium vs History
+4.2% premium
PE vs Historical
23.9 vs 21.2
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+4.2%
(market-implied from PE analysis)
1-Year Target
$78.06
(+4%)
2-Year Target
$81.33
(+9%)
3-Year Target
$84.75
(+13%)
3-Yr Target (if PE normalizes)
(PE: 24→21)
PE COMPRESSION
$75.12
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 23.9, Growth: 16.3%)
$117.97
(+58%)
Base:
(SPY PE: 20.1, Growth: 16.3%)
$98.99
(+32%)
Bear:
(PE: 17.1, Growth: 16.3%)
$84.14
(+12%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (24x PE) as earnings recover.
Forward PE: 24.10 | Forward EPS (Implied): $3.11
Bull Case
$90.45
(+21%)
Analyst growth 15.0%, PE expands to 25.3
Base Case
$74.91
(0%)
Market implied 0.0%, PE stable at 24.1
Bear Case
$57.31
(-24%)
Severe decline -15.0%, PE contracts to 21.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: August 23, 2026 6:26 PM ET
Data refreshes hourly during market hours. Next update: 7:26 PM
Data refreshes hourly during market hours. Next update: 7:26 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.
