1 Internet of Things Stock That Just Hit New All-Time Highs

• Digi International (DGII) is trading near new all-time highs.
• DGII has gained 55% over 52 weeks.
• Shares maintain a 100% “Buy” Barchart opinion.
• While some analysts view DGII as overvalued after its run-up, low short interest and current multiples suggest potential for further price appreciation.

Today’s Featured Stock

Valued at $1.82 billion, Digi International (DGII) is a leading global provider of business and mission-critical Internet of Things (products and services. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. DGII checks those boxes. Since the Trend Seeker issued a new “Buy” on Jan. 29, shares are up 10.20%.

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Barchart Technical Indicators for Digi International

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Digi scored an all-time high of $51.78 on Feb. 20.

• DGII has a Weighted Alpha of +74.27.
• Digi Intl has a 100% “Buy” opinion from Barchart.
• The stock has gained 55.34% over the past 52 weeks.
• Digi Intl has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $49.91 with a 50-day moving average of $44.84.
• DGII has made 10 new highs and is up 17.88% over the past month.
• Relative Strength Index (RSI) is at 62.15.
• There’s a technical support level around $48.76.

Don’t Forget the Fundamentals

• $1.82 billion market capitalization.
• 26.46x trailing price-earnings ratio.
• Revenue is expected to grow 16.39% this year and another 7.22% next year.
• Earnings are estimated to increase 11.33% this year and an additional 13.77% next year.

Analyst and Investor Sentiment on Digi International

• The Wall Street analysts followed by Barchart gave the stock 4 “Strong Buy,” 1 “Hold,” and 1 “Sell” opinions with price targets between $46 and $55.
• Value Line rates the stock “Above Average” with a price target of $56.
• CFRA’s MarketScope rates the stock a “Hold.”
• Morningstar thinks the stock is fairly valued.
• 381 investors following the stock on Motley Fool think it will beat the market while 36 think it won’t.
• 3,719 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 3.66% of the float with 4.67 days to cover the float.

The Bottom Line on Digi International

Although some analysts think the recent rise in price makes the stock overvalued, the price-earnings ratio and the low short interest reflect there still might be some room left for price increases.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.