Digi International (NASDAQ:DGII) Shares Gap Down Following Analyst Downgrade

Key Points

• Digi International shares plunged, opening at $53.09 after Piper Sandler cut its price target from $76 to $67 and maintained a neutral rating; shares were later trading at $55.46.
• The company beat quarterly estimates, reporting EPS of $0.78 versus $0.76 expected and revenue of $143.32 million versus $140.27 million, up 25.3% year over year.
• Fiscal 2027 revenue guidance of $588.7 million to $615.5 million topped analyst consensus, though the outlook was described as disappointing by some coverage. Analysts overall held a “Moderate Buy” consensus rating with an $80.60 average price target.

Digi International Inc. (NASDAQ:DGII - Get Free Report) gapped down before the market opened on Thursday after Piper Sandler lowered their price target on the stock from $76.00 to $67.00. The stock had previously closed at $66.96, but opened at $53.09. Piper Sandler currently has a neutral rating on the stock. Digi International shares last traded at $55.46, with a volume of 193,867 shares.

A number of other equities analysts also recently commented on DGII. Weiss Ratings downgraded Digi International from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday. Zacks Research lowered shares of Digi International from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 3rd. Stephens raised their target price on shares of Digi International from $75.00 to $85.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. B. Riley Financial lifted their price target on shares of Digi International from $78.00 to $86.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, Roth Capital set a $90.00 price target on shares of Digi International and gave the stock a "buy" rating in a report on Thursday, August 6th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Digi International has a consensus rating of "Moderate Buy" and a consensus price target of $80.60.

Key Digi International News

Here's some of the latest news about DGII:

• Positive Sentiment: Fiscal 2027 revenue guidance of $588.7 million to $615.5 million is above the $579 million analyst consensus, signaling potential growth. Digi International reports higher Q4 profit and raises FY27 outlook
• Neutral Sentiment: For fiscal Q1 2027, Digi forecast EPS of $0.71–$0.75 and revenue of $140 million–$144 million, ranges that broadly bracket consensus estimates. Digi International fiscal 2026 results
• Negative Sentiment: Despite the quarterly beat, coverage characterized the outlook as disappointing, weighing on investor sentiment. Piper Sandler also lowered its price target from $76 to $67 and shifted to a neutral rating, leaving little implied upside against the cited $66.96 share price. Why Digi International shares moved after hours

Institutional Trading of Digi International

A number of institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new position in shares of Digi International during the 2nd quarter worth about $445,526,000. Geneva Capital Management LLC raised its position in shares of Digi International by 0.6% during the 3rd quarter. Geneva Capital Management LLC now owns 1,392,261 shares of the technology company's stock worth $106,132,000 after acquiring an additional 7,919 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of Digi International during the 2nd quarter worth about $92,680,000. Port Capital LLC purchased a new stake in Digi International during the second quarter worth approximately $24,064,000. Finally, Bank of New York Mellon Corp purchased a new stake in Digi International during the second quarter worth approximately $16,274,000. 95.90% of the stock is owned by hedge funds and other institutional investors.

Digi International Stock Performance

The firm has a 50 day moving average of $72.53 and a two-hundred day moving average of $63.89. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.13 and a quick ratio of 0.78. The stock has a market cap of $2.14 billion, a PE ratio of 44.79 and a beta of 1.00.

Digi International (NASDAQ:DGII - Get Free Report) last announced its quarterly earnings results on Thursday, November 12th. The technology company reported $0.78 EPS for the quarter, beating the consensus estimate of $0.76 by $0.02. Digi International had a net margin of 9.63% and a return on equity of 12.16%. The company had revenue of $143.32 million for the quarter, compared to analyst estimates of $140.27 million. During the same period in the prior year, the firm posted $0.26 earnings per share. The firm's revenue was up 25.3% on a year-over-year basis. Research analysts predict that Digi International Inc. will post 2.31 EPS for the current fiscal year.

Digi International Company Profile

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.

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