Lumida
/DGII
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Digi International Inc

Digi International Inc

DGII
$63.92USD↑+0.11%+0.07 today

MARKET CAP

2.4B

P/E (TTM)

28.2x

FWD P/E

24.3x

DAY RANGE

$60 – $65

52W RANGE

$31
$76

AI Summary

Stalk
Sell NowMedium

The stock is in a Stage 4 decline with confirmed lower highs and lows and price trading below the short-term EMAs on accelerating volume. The Support Failure pattern signals a loss of structural support, and oversold readings in an ongoing downtrend caution against countertrend entries. Medium-term bias remains bearish under Stage 4 momentum, while the long-term uptrend on the 200-DMA persists only as context. We recommend selling now to participate in the continuation into EMAs resistance zones and avoid further downside.

  • ↑Q2 2026 revenue reached $131 M (+25% YoY) driven by subscription model
  • ↑ARR climbed to $184 M (+50% YoY), enhancing revenue predictability
  • ↓Profitability challenged: rising costs squeeze margins despite top-line growth
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Digi International Inc. (NASDAQ: DGII) is a leader in the industrial Internet of Things (IoT) sector, specializing in providing IoT connectivity solutions, including cellular routers and cloud-based management services. As a provider of tailored technology solutions, Digi aims to enhance operational efficiency across a diverse range of industries, including utilities, healthcare, and data centers. The company has successfully transitioned to a subscription-based annual recurring revenue (ARR) model, which now constitutes a significant portion of its revenue, positioning it favorably in the growing market of IoT and automation.

Bull says

  • ↑Q2 2026 revenue reached $131 M (+25% YoY) driven by subscription model
  • ↑ARR climbed to $184 M (+50% YoY), enhancing revenue predictability
  • ↑Operating cash flow hit $41 M (+58% YoY), enabling debt reduction
  • ↑Strategic acquisitions (Jolt, Particle) integrated successfully, expanding IoT suite
  • ↑Analysts maintain ‘Moderate Buy’ with $66.20 average target
  • ↑Strong momentum factors and positive analyst revisions support upside

Bear says

  • ↓Profitability challenged: rising costs squeeze margins despite top-line growth
  • ↓Insider selling, including CFO stakes, raises internal performance concerns
  • ↓Leverage risk elevated amid rising rates, increasing financing costs
  • ↓Low institutional ownership signals limited hedge fund confidence
  • ↓Macro volatility and uncertain AI infrastructure build-out may slow demand
  • ↓Weak earnings yield and profitability factors could deter investors

Earnings Call · Q2 2026 · Mgmt. Guidance

Updated 05-12-2026bullish

Transcript signals

Bull points

  • $131 million of revenue this quarter, 25% up year over year. That is a quarterly record.
  • 64% gross margins. That's 190 basis points up year over year. 64 is an all-time record for us.
  • $41 million cash flow from operations also is a quarterly record. That is up 58% year over year.

Bear points

  • we're seeing channel also being more incremental, not willing to, you know, places big, much bigger bets without a customer CEO.
Read full transcript analysis ›