Digi International (NASDAQ:DGII) Shares Gap Down – Here’s Why

Digi International Inc. (NASDAQ:DGII) shares gapped down prior to trading on Thursday . The stock had previously closed at $46.55, but opened at $39.56. Digi International shares last traded at $46.6150, with a volume of 189,618 shares traded.

Digi International News Roundup

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

• Positive Sentiment: Revenue and adjusted EPS beat consensus; Q1 revenue grew ~17.9% YoY to ~$122.5M and the company reported $0.56 EPS (vs. ~$0.55 consensus), signaling solid top-line momentum. Digi International Inc (DGII) Q1 2026 Earnings Call Highlights: Record Revenue and Strategic …
• Positive Sentiment: Company raised guidance: Q2 EPS guided to $0.560–$0.590 (above consensus) and Q2 revenue guided to $124–$128M; FY revenue range was also lifted above Street estimates — a signal management expects continued growth. Digi International (DGII) Beats Q1 Earnings and Revenue Estimates
• Neutral Sentiment: Management commentary and the full earnings call transcript provide details on growth drivers and strategy (useful for longer-term investors to judge sustainability). Digi International Inc. (NASDAQ:DGII) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst coverage remains constructive overall (multiple buy/overweight ratings and a median price target near $48), but opinions are mixed — monitor any revisions. Analysts’ Opinions Are Mixed on These Technology Stocks: Digi International (DGII) and Western Digital (WDC)
• Negative Sentiment: Stock sold off despite the beat — investors appear focused on the small EPS beat (+$0.01) vs. expectations, possible differences between adjusted vs. GAAP EPS, and some balance-sheet shifts (reported liabilities increase), which may have reduced near-term enthusiasm. Digi International shares tumble despite Q1 earnings beat
• Negative Sentiment: Reported insider selling and coverage noting mixed GAAP/diluted EPS figures have raised short-term investor caution; watch upcoming filings/disclosures for clarity. Digi International (DGII) Stock Falls on Q1 2026 Earnings

Analysts Set New Price Targets

Several equities research analysts have weighed in on DGII shares. Craig Hallum reiterated a “buy” rating and issued a $50.00 target price on shares of Digi International in a report on Thursday. Zacks Research lowered Digi International from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Piper Sandler lifted their price target on shares of Digi International from $41.00 to $46.00 and gave the company a “neutral” rating in a research note on Monday, January 5th. B. Riley boosted their price target on Digi International from $45.00 to $48.00 and gave the company a “buy” rating in a report on Thursday, November 13th. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Digi International in a research note on Wednesday, December 24th. Four research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $49.80.

Digi International Stock Down 2.6%

The stock has a market cap of $1.70 billion, a price-to-earnings ratio of 41.97 and a beta of 0.85. The stock’s 50-day moving average price is $43.86 and its 200-day moving average price is $38.64. The company has a current ratio of 1.21, a quick ratio of 0.85 and a debt-to-equity ratio of 0.25.

Digi International (NASDAQ:DGII) last posted its quarterly earnings results on Wednesday, February 4th. The technology company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.55 by $0.01. Digi International had a return on equity of 10.88% and a net margin of 9.48%.The company had revenue of $122.46 million during the quarter, compared to the consensus estimate of $115.90 million. During the same quarter in the prior year, the company earned $0.45 EPS. The firm’s quarterly revenue was up 17.9% compared to the same quarter last year. Digi International has set its Q2 2026 guidance at 0.560-0.590 EPS. On average, sell-side analysts expect that Digi International Inc. will post 1.68 earnings per share for the current year.

Insider Activity at Digi International

In related news, VP David H. Sampsell sold 22,222 shares of Digi International stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $38.38, for a total transaction of $852,880.36. Following the sale, the vice president directly owned 31,749 shares in the company, valued at $1,218,526.62. The trade was a 41.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, VP Terrence G. Schneider sold 16,667 shares of Digi International stock in a transaction on Monday, November 24th. The stock was sold at an average price of $40.56, for a total value of $676,013.52. Following the completion of the sale, the vice president directly owned 24,756 shares of the company’s stock, valued at approximately $1,004,103.36. The trade was a 40.24% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 56,572 shares of company stock valued at $2,256,580 in the last three months. Corporate insiders own 3.40% of the company’s stock.

Hedge Funds Weigh In On Digi International

Several large investors have recently modified their holdings of DGII. Hillsdale Investment Management Inc. bought a new stake in shares of Digi International during the 2nd quarter worth approximately $4,293,000. Geneva Capital Management LLC boosted its stake in shares of Digi International by 5.9% during 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 during the period. Ameriprise Financial Inc. grew its holdings in shares of Digi International by 7.7% in the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company’s stock worth $22,736,000 after purchasing an additional 46,659 shares during the last quarter. AEGON ASSET MANAGEMENT UK Plc bought a new stake in Digi International during the 4th quarter valued at about $2,000,000. Finally, SG Americas Securities LLC boosted its position in Digi International by 445.3% in the 3rd quarter. SG Americas Securities LLC now owns 30,670 shares of the technology company’s stock valued at $1,118,000 after buying an additional 25,046 shares during the period. Institutional investors own 95.90% of the company’s stock.

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.