Digi International (NASDAQ:DGII) Shares Down 7.5% After Analyst Downgrade

Digi International Inc. (NASDAQ:DGII) shares were down 7.5% during mid-day trading on Friday after Piper Sandler lowered their price target on the stock from $76.00 to $67.00. Piper Sandler currently has a neutral rating on the stock. Digi International traded as low as $54.01 and last traded at $54.0680. 490,881 shares traded hands during trading, an increase of 36% from the average session volume of 360,070 shares. The stock had previously closed at $58.44.

Other analysts also recently issued reports about the stock. Roth Capital set a $90.00 price target on shares of Digi International and gave the company a “buy” rating in a report on Thursday, August 6th. Weiss Ratings lowered Digi International from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday. Zacks Research cut Digi International from a “strong-buy” rating to a “hold” rating in a report on Monday, August 3rd. Stephens boosted their target price on Digi International from $75.00 to $85.00 and gave the stock an “overweight” rating in a research report on Thursday, August 6th. Finally, B. Riley Financial increased their price target on Digi International from $78.00 to $86.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $80.60.

Recent Digi International Headlines

Investors following DGII have been watching these headlines:

• Positive Sentiment: Fiscal 2027 revenue guidance of $588.7 million–$615.5 million is above the $579 million analyst consensus, supporting the longer-term growth case. Fiscal 2027 Guidance
• Neutral Sentiment: A recent analyst roundup included DGII among technology stocks with bullish analyst sentiment, though the article listing provided no specific new rating or target. Analysts Are Bullish on Top Technology Stocks
• Negative Sentiment: Commentary also flagged near-term margin pressure and acquisition-related risk, weighing on the quality of the growth outlook. Piper Sandler lowered its price target to $67 from $76 and moved to a neutral rating. ARR Acceleration and Record Revenue Mask Risks

Institutional Investors Weigh In On Digi International

A number of institutional investors and hedge funds have recently added to or reduced their stakes in DGII. Farther Finance Advisors LLC increased its position in Digi International by 164.9% during the 3rd quarter. Farther Finance Advisors LLC now owns 392 shares of the technology company’s stock valued at $30,000 after purchasing an additional 244 shares during the period. USA Financial Formulas lifted its position in shares of Digi International by 109.3% in the 1st quarter. USA Financial Formulas now owns 946 shares of the technology company’s stock worth $46,000 after purchasing an additional 494 shares during the period. Sterling Capital Management LLC lifted its position in shares of Digi International by 467.8% in the 3rd quarter. Sterling Capital Management LLC now owns 1,181 shares of the technology company’s stock worth $90,000 after purchasing an additional 973 shares during the period. Nisa Investment Advisors LLC boosted its stake in shares of Digi International by 77.8% during the third quarter. Nisa Investment Advisors LLC now owns 1,511 shares of the technology company’s stock valued at $115,000 after purchasing an additional 661 shares in the last quarter. Finally, Global Retirement Partners LLC bought a new position in shares of Digi International during the second quarter valued at approximately $154,000. Institutional investors own 95.90% of the company’s stock.

Digi International Trading Down 7.5%

The stock has a market capitalization of $2.05 billion, a P/E ratio of 39.31 and a beta of 1.00. The stock’s 50 day moving average price is $72.31 and its 200-day moving average price is $63.96. The company has a quick ratio of 0.78, a current ratio of 1.13 and a debt-to-equity ratio of 0.16.

Digi International (NASDAQ:DGII) last posted its quarterly earnings data on Wednesday, November 11th. The technology company reported $0.78 EPS for the quarter, topping the consensus estimate of $0.76 by $0.02. The firm had revenue of $143.32 million during the quarter, compared to analyst estimates of $140.27 million. Digi International had a net margin of 10.03% and a return on equity of 13.21%. Digi International’s revenue was up 25.3% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.26 EPS. Digi International has set its Q1 2027 guidance at 0.710-0.750 EPS. As a group, equities research analysts expect that Digi International Inc. will post 2.77 earnings per share for the current year.

About Digi International

Digi International provides products and services for connecting, managing and securing devices used in the Internet of Things (IoT). Its offerings include cellular routers and gateways, embedded modules, console servers and other networking equipment, along with software and services for device management and remote monitoring. The company serves businesses and organizations across industries such as transportation, energy, healthcare, industrial automation and retail. Its solutions support deployments ranging from connected equipment and infrastructure to remote access and network management, with customers in markets around the world.