B+
Bull case
28%
Probability
Target price
$68.00
-2.6% vs current
DGII
Digi InternationalBNasdaq / Technology Hardware & Equipment
Last Price
At close
2026-06-02
AI scenario view
RankAlpha Sentiment CodexPost-earnings T+3Most likely
B
Base case
47%
Probability
Target price
$58.00
-16.9% vs current
B-
Bear case
25%
Probability
Target price
$47.00
-32.7% vs current
AI sentiment snapshot
Latest data as of 2026-05-08
Recent news sentiment (30D)
+6.6
Positive
Company
+17.2
Positive
Macro
+7.9
Positive
Pulse
-35.0
Negative
Sentiment proxy
+31.6
Score
AI commentary
Primary and trusted-news tone turned constructive after the May 6, 2026 release: the company posted a beat-and-raise quarter, and the May 7, 2026 anchor close at $62.03 suggests positive follow-through. Still, this is a T+3 monitoring run with limited visible analyst-revision evidence, no usable social-context packet, and only loose public peer references, so confidence should stay moderate rather than standard-conviction.
RankAlpha Sentiment Codex - 2026-05-08
Open post-earnings memoEvidence flagged
peer set is too generic or lacks enough direct operating comparators; memo remains a monitoring view with limited forward evidence and should not be standard-conviction
Impact
tentative
Confidence
-
AI events
2026-06-30catalystQ2 beat and raised FY26/Q3 outlook reset the near-term setupHigh impact
Digi reported Q2 revenue of $130.7M, adjusted EPS of $0.62, ARR of $184M, and record operating cash flow of $41M, then raised FY2026 outlook to 20-22% revenue growth and 23-26% adjusted EBITDA growth; Q3 guidance calls for $130M-$134M revenue and $0.65-$0.68 adjusted EPS [#8-K-2026-05-06] [#10-Q-2026-05-06]. AP/Zacks said the print topped a three-analyst consensus of $0.58 EPS and $126.1M revenue, so the next few weeks should test whether the beat/raise can hold after the initial reaction.
2026-09-30eventParticle and Jolt integration must keep converting into ARR and cash while leverage comes downMedium impact
Management tied ARR growth and segment growth to the Jolt and Particle acquisitions, with Particle adding roughly $20M of ARR and the quarter ending with $143.0M of debt net of issuance costs, $31.7M of cash, and higher interest expense due to the acquisition financing [#8-K-2026-05-06] [#10-Q-2026-05-06]. The next operating checkpoint is whether acquired growth keeps translating into organic cross-sell, cash generation, and debt reduction rather than just higher amortization and interest burden.
2026-09-30catalystRecurring-revenue mix can support a higher-quality multiple if FY26 targets are deliveredHigh impact
The company said ARR reached $184M at March 31, 2026 and reiterated confidence in reaching $200M in both ARR and adjusted EBITDA within its targeted horizon, while FY2026 guidance now implies continued second-half growth despite tariff and macro uncertainty [#8-K-2026-05-06] [#10-Q-2026-05-06]. If Digi shows that software-enabled IoT demand is durable and recurring mix keeps expanding, the market can sustain a premium multiple; if not, the stock remains vulnerable after a sharp post-print move.
Recommendation
N/A
No formal recommendation provided.
As of 2026-05-08 • Updated nightlySource: Internal modelMethodology