Digi International Inc. (DGII)

In the past six months, Digi International's stock has shown strong investor interest, reaching a new 52-week high of $38.98 and closing at $38.73 as of October 20, 2025. The company reported $0.53 EPS for the last quarter, surpassing analysts' estimates of $0.51 by $0.02, with a revenue increase of 2.2% year-over-year. Analysts have also increased their price targets for DGII, with B. Riley raising theirs to $40.00 and Stephens projecting a target of $50.00. Piper Sandler also boosted their price target from $30.00 to $33.00 with a "neutral" rating, while Roth Capital reaffirmed a "buy" rating.

The provided information does not explicitly detail the demand seasonality for Digi International, Inc.'s products and services. However, the company's business model, which includes subscription-based software services and professional services in addition to product sales, suggests a focus on recurring revenue streams. The IoT Solutions segment, comprising SmartSense by Digi and Ventus, primarily operates on a subscription model, providing higher-margin recurring revenues. The company's strategic focus on expanding Annual Recurring Revenue (ARR) through subscription and cloud monitoring services is expected to deliver higher gross margins and contribute to a stable and predictable income stream.

Digi International, Inc. is an American Industrial Internet of Things (IIoT) technology company specializing in IoT connectivity products and services, founded in 1985 and headquartered in Hopkins, Minnesota. The company operates through two primary business segments: IoT Products & Services, focusing on hardware and software solutions for IoT connectivity, including embedded systems, networking devices, and device management software; and IoT Solutions, providing end-to-end IoT solutions under the SmartSense by Digi and Ventus brands, often involving a subscription-based model. Digi International serves a diverse range of industries, including transportation, healthcare, energy, manufacturing, industrial automation, retail, and smart city initiatives.

Digi International has a significant global presence, serving customers worldwide through a network of partners and direct sales channels. The company's global headquarters is in Hopkins, Minnesota, USA. It maintains regional sales offices throughout North America, Europe, and Asia, with engineering locations also in North America and Europe. Specifically, Digi International has business presences in North America, Europe, the Middle East and Africa, and the Asia-Pacific region. Its locations include offices in the United States, Canada, Australia, Germany, Spain, the UK, Singapore, China, and Japan.

Digi International has built a solid reputation for reliable and robust products since its founding in 1985. The company's brand is considered a valuable asset, and it is recognized for its commitment to quality, reliability, and customer support. Its slogan, "Connect with Confidence," reflects its role in providing secure and reliable critical communications infrastructures in demanding environments. In the past year, Digi International has continued to be recognized for its innovative solutions, including Digi Connect® Sensor XRT-M being named a 2025 IoT Evolution Product of the Year Award winner. However, Digi International faces certain risks that could impact its reputation, including technology and cybersecurity risks, issues related to the use of artificial intelligence, and competition.

Digi International Inc. has a diverse ownership structure, including institutional investors, individual shareholders, and company insiders. As of September 2025, 10 institutional firms held stakes in Digi International. The collective stake of institutional investors was 0.6% in September 2025, a decrease from 100.3% in June 2025. Major institutional holders as of September 30, 2025, included Pacer Advisors, Inc., VOYA INVESTMENT MANAGEMENT LLC, Goelzer Investment Management, Inc., Inspire Investing, LLC, and YOUSIF CAPITAL MANAGEMENT, LLC. Significant buyers of Digi International shares during September 2025 included GAMMA Investing LLC, CWM, LLC, and Farther Finance Advisors, LLC. Leading sellers during the same period included Pacer Advisors, Inc., Inspire Investing, LLC, VOYA INVESTMENT MANAGEMENT LLC, and YOUSIF CAPITAL MANAGEMENT, LLC.