B+
Bull case
28%
Probability
Target price
$68.00
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
DGII
Digi InternationalCNasdaq / Technology Hardware & Equipment
Last Price
Quote time unavailable
Current thesis
The post-earnings bull read is that Digi delivered a beat versus the AP/Zacks consensus frame, set records for revenue, ARR, and operating cash flow, and raised full-year guidance while both segments posted growth [#8-K-2026-05-06]. That supports the deterministic positive prior, especially if investors reward the recurring-revenue mix rather than treating the quarter as acquisition-assisted only.
Posture
Mixed
Lead driver
Value
What changed
Value remains the lead driver in the composite, 7D delta -0.9.
What can break
Execution risk if Particle and Jolt integration lifts ARR but fails to deliver enough organic cross-sell, margin expansion, or debt paydown.
Momentum
82
Value
55
Sentiment
40
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $58.00 · Bull $68.00 · Bear $47.00Analysis 2026-05-08; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-10-23 • Vendor: Data Vendor v1
Scores
As of 2026-10-23 • Model: HYBRID_IC_RP
AI Memo
As of 2026-05-08 • Model: RankAlpha Sentiment Codex
Investment thesisAs of 2026-10-23
Investment thesis
As of 2026-10-23
Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-10-23. Definitions
Supporting evidence
What
Grade C · Mixed
Confidence Medium · Net Neutral
Target $85.40
Why
Momentum82 · Δ7d +11.0
Value55 · Δ7d -0.9
Sentiment40 · Δ7d -4.9
So what
Balanced signals (Net Neutral). Wait for confirmation before sizing up.
Confirming evidence
- • Value remains the lead driver in the composite, 7D delta -0.9.
Contradictions & invalidation
- • Execution risk if Particle and Jolt integration lifts ARR but fails to deliver enough organic cross-sell, margin expansion, or debt paydown.
- • Leverage and financing risk remain relevant after the Particle deal; March 31, 2026 long-term debt net of issuance costs was about $143.0M and interest expense rose year over year [#10-Q-2026-05-06].
- • The bear read is that much of the acceleration still depends on acquired businesses, while amortization and financing costs rose with Particle.
Catalyst clock
2026-06-30
Q2 beat and raised FY26/Q3 outlook reset the near-term setup
Lead driver: Value · See fundamentals
Momentum
82
8% active weight
Current posture
7d trendImproving
Δ7d
+11.0
Δ21d
+0.8
Value
55
47% active weight
Current posture
7d trendFlat
Δ7d
-0.9
Δ21d
-1.2
Sentiment
40
45% active weight
Current posture
7d trendSoftening
Δ7d
-4.9
Δ21d
-4.5
Why this grade
Composite grade C. Momentum 82.5 / Value 54.9 / Sentiment 40.4
Scenario snapshot
Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-05-08. Scenario method
Most likely
B
Base case
47%
Probability
Target price
$58.00
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
B-
Bear case
25%
Probability
Target price
$47.00
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
Fundamentals (TTM)As of 2026-10-23
Fundamentals (TTM)
As of 2026-10-23
Market Cap
$2.84B
Beta
0.85
Shares Out
37.95M
P/E (TTM)
40.8
P/S (TTM)
3.86
P/FCF (TTM)
15.75
Rev YoY
+29.0%
EPS YoY
+48.7%
Gross Margin
+61.7%
Op Margin
+15.1%
Net Debt
$149.28M
Current Ratio
1.13
As of 2026-10-23 • Updated nightlySource: Internal modelMethods & Data