Digi International (DGII) Stock: Buy, Sell, or Hold?
DGII - Digi International Inc
$72.80
-2.50 (-3.32%)
▼
5d:
+1.46%
30d:
-3.32%
90d:
+8.74%
HOLD
MODERATE Confidence
Analysis Updated: Oct 22, 2026 12:00 AM ET
Earnings: Nov 11, 2026
18d
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Interactive Price Chart (1 Month)
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Bottom Line:
📊 HOLD: DGII is fairly valued with market pricing in 2.5% annual growth. Fine to hold or accumulate slowly on dips.
📊 HOLD: DGII is fairly valued with market pricing in 2.5% annual growth. Fine to hold or accumulate slowly on dips.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$109.27
Based on 10.2% avg growth
INTRINSIC VALUE TODAY
$67.85
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 21.6x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DGII is currently trading at $72.80, which is considered fair relative to its 30-day fair value range of $71.17 to $76.49. The stock's valuation (Forward PE: 23.2) is in line with its historical norms (21.6). At these levels, the market is pricing in 2.5% 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 uptrend. Immediate support is located at $69.45, while resistance sits at $76.17. Short-term momentum is weak, with the stock down 3.3% recently.
Market Sentiment: The stock scores a mixed 50/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. In the options market, Implied Volatility is low (18th 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 (+17.3%). 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 uptrend. Immediate support is located at $69.45, while resistance sits at $76.17. Short-term momentum is weak, with the stock down 3.3% recently.
Market Sentiment: The stock scores a mixed 50/100 on our bottoming-setup gauge, with only partial signs of a stabilized entry point. In the options market, Implied Volatility is low (18th 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 (+17.3%). 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
FAIR
Historical Trading Range
$71.17 -
$76.49
Company Quality Score
56/100
(HOLD)
Options IV Signal
18th percentile
(COMPLACENCY WARNING)
Volume Confirmation
HIGH
Confidence Score
72.7%
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
- NEUTRAL: Price in fair range
- BULLISH: Options cheap (IV 18th percentile)
- NEUTRAL: Mixed technical signals (50/100)
- BULLISH: High volume confirmation
- BEARISH: Downward momentum (-3.3%)
- BULLISH: Trading below Wall St target ($85.40)
- NEUTRAL: Market pricing in 2.5% annual earnings growth - fairly valued
- NEUTRAL: Bottoming setup forming (50/100) — watch for confirmation
Trading Range Analysis
30-Day Trading Range
$71.17 -
$76.49
Current vs Trading Range
FAIR
Expected Move (7 Days)
±$4.53
(6.2%)
Support & Resistance Levels
Support Level
$69.45
Resistance Level
$76.17
Current Trend
Uptrend
Technical data as of
Oct 22, 2026
Fundamental Context
Forward P/E (Next Year Est.)
23.24
Wall Street Target
$85.40
(+17.3%)
Revenue Growth (YoY)
29.0%
Earnings Growth (YoY)
48.1%
Profit Margin
9.6%
Valuation Premium vs History
+2.5% premium
PE vs Historical
23.2 vs 21.6
FAIR
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
+2.5%
(market-implied from PE analysis)
1-Year Target
$74.62
(+3%)
2-Year Target
$76.49
(+5%)
3-Year Target
$78.40
(+8%)
3-Yr Target (if PE normalizes)
(PE: 23→22)
PE COMPRESSION
$72.85
(+0%)
Earnings growth offset by PE compression
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 23.2, Growth: 16.3%)
$114.65
(+58%)
Base:
(SPY PE: 19.9, Growth: 16.3%)
$97.96
(+35%)
Bear:
(PE: 16.9, Growth: 16.3%)
$83.26
(+14%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (24x PE), but valuation improves significantly next year (23x PE) as earnings recover.
Forward PE: 23.92 | Forward EPS (Implied): $3.04
Bull Case
$87.91
(+21%)
Analyst growth 15.0%, PE expands to 25.1
Base Case
$72.80
(0%)
Market implied 0.0%, PE stable at 23.9
Bear Case
$55.69
(-24%)
Severe decline -15.0%, PE contracts to 21.5
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
Share & Embed Analysis
Last updated: October 23, 2026 2:15 AM ET
Data refreshes hourly during market hours. Next update: 3:15 AM
Data refreshes hourly during market hours. Next update: 3:15 AM
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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.
