DGII Should I Buy
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Digi International Inc (DGII) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company demonstrates strong financial growth, positive analyst sentiment, and bullish technical indicators. Despite the lack of recent news or significant trading trends, the stock's fundamentals and growth potential make it a solid choice for long-term holding.
The technical indicators for DGII are bullish. The MACD histogram is positive and expanding, indicating upward momentum. The RSI is neutral at 62.777, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its pivot level of 43.948, with resistance levels at 47.321 and 49.405, suggesting potential upside.
Strong financial performance in Q1 2026, with revenue up 17.90% YoY, net income up 16.15% YoY, and EPS up 14.81% YoY.
Positive analyst sentiment, with multiple price target raises and confidence in the company's growth potential.
Bullish technical indicators supporting a positive price trend.
Lack of recent news or significant trading trends from hedge funds or insiders.
Slightly conservative FY26 guidance, as noted by analysts.
Digi International reported strong financial results for Q1 2026. Revenue increased by 17.90% YoY to $122.46 million, net income grew by 16.15% YoY to $11.71 million, and EPS rose by 14.81% YoY to $0.31. Gross margin also improved slightly to 62.38%. These figures indicate robust growth and operational efficiency.
Analysts are generally positive on DGII. Craig-Hallum raised the price target to $50 and maintained a Buy rating, citing strong growth in Cellular Solutions and confidence in acquisition integration. Stephens raised the price target to $55 with an Overweight rating, highlighting strong ARR growth and execution. Piper Sandler raised the price target to $46 but maintained a Neutral rating.
