Digi International (NASDAQ:DGII) Downgraded to Strong Sell Rating by Zacks Research

Zacks Research cut shares of Digi International (NASDAQ:DGII) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday morning,Zacks.com reports.

Several other equities research analysts have also recently weighed in on DGII. Piper Sandler increased their price objective on Digi International from $41.00 to $46.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. B. Riley Financial upped their target price on shares of Digi International from $45.00 to $48.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. Stephens raised their price objective on shares of Digi International from $50.00 to $55.00 and gave the stock an “overweight” rating in a report on Friday, January 2nd. Craig Hallum reissued a “buy” rating and issued a $50.00 target price on shares of Digi International in a report on Thursday, February 5th. Finally, Roth Mkm raised their price target on Digi International from $45.00 to $50.00 and gave the company a “buy” rating in a report on Thursday, November 13th. Four equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $49.80.

Digi International Stock Performance

Shares of NASDAQ DGII opened at $46.41 on Tuesday. The stock’s fifty day simple moving average is $44.16 and its 200 day simple moving average is $39.05. The stock has a market capitalization of $1.75 billion, a price-to-earnings ratio of 41.44 and a beta of 0.85. The company has a quick ratio of 0.90, a current ratio of 1.24 and a debt-to-equity ratio of 0.21. Digi International has a 52-week low of $22.39 and a 52-week high of $48.00.

Digi International (NASDAQ:DGII) last released its quarterly earnings results on Wednesday, February 4th. The technology company reported $0.56 earnings per share for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01. The business had revenue of $122.46 million during the quarter, compared to analyst estimates of $115.90 million. Digi International had a return on equity of 10.93% and a net margin of 9.45%.Digi International’s revenue for the quarter was up 17.9% on a year-over-year basis. During the same quarter last year, the company posted $0.45 EPS. Digi International has set its Q2 2026 guidance at 0.560-0.590 EPS. As a group, sell-side analysts forecast that Digi International will post 1.68 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Satbir Khanuja sold 6,000 shares of the stock in a transaction on Tuesday, February 10th. The stock was sold at an average price of $46.00, for a total value of $276,000.00. Following the transaction, the director owned 85,298 shares of the company’s stock, valued at $3,923,708. This represents a 6.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Terrence G. Schneider sold 4,208 shares of the business’s stock in a transaction dated Tuesday, November 25th. The stock was sold at an average price of $41.68, for a total value of $175,389.44. Following the transaction, the vice president owned 24,756 shares of the company’s stock, valued at $1,031,830.08. The trade was a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 68,672 shares of company stock valued at $2,810,824. Company insiders own 3.40% of the company’s stock.

Institutional Investors Weigh In On Digi International

A number of hedge funds have recently modified their holdings of DGII. KLP Kapitalforvaltning AS increased its stake in Digi International by 20.0% during the 2nd quarter. KLP Kapitalforvaltning AS now owns 7,800 shares of the technology company’s stock worth $272,000 after purchasing an additional 1,300 shares in the last quarter. New York State Teachers Retirement System increased its holdings in Digi International by 6.6% during the 2nd quarter. New York State Teachers Retirement System now owns 58,347 shares of the technology company’s stock worth $2,034,000 after purchasing an additional 3,632 shares in the last quarter. Geneva Capital Management LLC lifted its holdings in shares of Digi International by 5.9% in the second quarter. Geneva Capital Management LLC now owns 1,730,417 shares of the technology company’s stock valued at $60,322,000 after purchasing an additional 95,756 shares in the last quarter. Campbell & CO Investment Adviser LLC acquired a new position in shares of Digi International during the second quarter worth about $768,000. Finally, SG Americas Securities LLC acquired a new stake in Digi International in the 2nd quarter valued at approximately $196,000. Institutional investors and hedge funds own 95.90% of the company’s stock.

Trending Headlines about Digi International

Here are the key news stories impacting Digi International this week:

• Positive Sentiment: Recent fundamentals: Digi reported a quarterly EPS and revenue beat and raised guidance for the next quarter (Q2 2026 EPS guide 0.560–0.590). Revenue was up year-over-year, supporting the stock’s upward move as investors focus on growth and profitability. Earnings & company summary
• Neutral Sentiment: Analyst mix: Recent coverage shows conflicting analyst views on DGII, which can increase volatility but doesn’t provide a clear directional catalyst. Analysts Have Conflicting Sentiments
• Neutral Sentiment: Short interest is effectively zero in the recent reports, indicating limited immediate pressure from short sellers and a low days-to-cover metric — a neutral-to-supportive technical factor for the stock.
• Negative Sentiment: Insider sales reported Feb 10–11: Multiple insiders sold stock this week, which can weigh on sentiment. TipRanks flagged “significant stock sales” by insiders on Feb 11. Insider selling article
• Negative Sentiment: Director sale: Director Satbir Khanuja sold 6,000 shares at an average price of $46.00 (total ~$276k) on Feb 10; this was disclosed via SEC Form 4. Director Form 4
• Negative Sentiment: Officer sales: VP David H. Sampsell sold 6,100 shares across Feb 9–10 (5,000 at ~$45.74 and 1,100 at ~$45.04), reducing his stake meaningfully; transaction details filed with the SEC. Officer Form 4

About Digi International

Digi International Inc is a provider of Internet of Things (IoT) connectivity products and services designed to link devices to networks and applications securely. The company develops a broad range of networking hardware, including cellular and Ethernet routers, gateways, embedded modules and adaptors, as well as accessories and antennas. Digi’s solutions enable businesses to deploy remote monitoring, control and automation systems across diverse industries such as transportation, utilities, healthcare, retail and industrial manufacturing.

In addition to its physical devices, Digi offers cloud-based management software and professional services that simplify device configuration, monitoring and over-the-air updates.