Digi International Inc

Price has rolled over into a clear lower-highs/lower-lows sequence under the short-term EMAs in a Stage 3 distribution phase. We adopt a medium-term bearish bias, deferring fresh bearish entries until resistance is retested near the 9/20 EMA zone. Trimming into overhead supply preserves position while acknowledging oversold conditions may spur relief rallies.

• ↑Q3 revenue $139M (+29% YoY) underscores strong growth momentum.
• ↑Gross margin expanded to 64.8% (vs 60.5% YoY) on mix and cost controls.
• ↓P/E ratio of 59.8x implies potential overvaluation if growth slows.