Digi International (NASDAQ:DGII) Rating Lowered to Strong Sell at Zacks Research

Digi International (NASDAQ:DGII) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Tuesday,Zacks.com reports.

Other equities analysts have also issued research reports about the stock. Craig Hallum reissued a “buy” rating and issued a $50.00 price target on shares of Digi International in a report on Thursday, February 5th. Roth Mkm lifted their target price on Digi International from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. Weiss Ratings reissued a “hold (c+)” rating on shares of Digi International in a research note on Wednesday, December 24th. Wall Street Zen upgraded Digi International from a “buy” rating to a “strong-buy” rating in a report on Saturday, January 31st. Finally, Piper Sandler lifted their price objective on Digi International from $41.00 to $46.00 and gave the company a “neutral” rating in a report on Monday, January 5th. Four investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $49.80.

Digi International Stock Performance

DGII stock opened at $46.41 on Tuesday. The company has a 50 day moving average price of $44.16 and a 200 day moving average price of $39.05. Digi International has a fifty-two week low of $22.39 and a fifty-two week high of $48.00. The company has a debt-to-equity ratio of 0.21, a current ratio of 1.24 and a quick ratio of 0.90. The stock has a market capitalization of $1.75 billion, a PE ratio of 41.44 and a beta of 0.85.

Digi International (NASDAQ:DGII) last released its earnings results on Wednesday, February 4th. The technology company reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.55 by $0.01. Digi International had a net margin of 9.45% and a return on equity of 10.93%. The company had revenue of $122.46 million for the quarter, compared to the consensus estimate of $115.90 million. During the same period in the prior year, the company posted $0.45 EPS. The company’s 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. Analysts forecast that Digi International will post 1.68 EPS for the current year.

Insider Transactions at Digi International

In other Digi International news, Director Satbir Khanuja sold 6,000 shares of the business’s stock in a transaction that occurred 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 sale, the director owned 85,298 shares in the company, valued at approximately $3,923,708. The trade was a 6.57% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Terrence G. Schneider sold 16,667 shares of the company’s stock in a transaction that occurred 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 transaction, the vice president directly owned 24,756 shares of the company’s stock, valued at approximately $1,004,103.36. This trade represents a 40.24% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 68,672 shares of company stock valued at $2,810,824 over the last three months. Company insiders own 3.40% of the company’s stock.

Institutional Trading of Digi International

Institutional investors have recently made changes to their positions in the business. Bessemer Group Inc. boosted its holdings in Digi International by 2,215.1% during the third quarter. Bessemer Group Inc. now owns 1,227 shares of the technology company’s stock worth $45,000 after purchasing an additional 1,174 shares during the last quarter. Lazard Asset Management LLC lifted its position in Digi International by 25.1% during the 2nd quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock worth $58,000 after buying an additional 339 shares in the last quarter. Russell Investments Group Ltd. boosted its stake in shares of Digi International by 1,530.9% during the 3rd quarter. Russell Investments Group Ltd. now owns 3,376 shares of the technology company’s stock worth $123,000 after buying an additional 3,169 shares during the last quarter. LSV Asset Management acquired a new position in shares of Digi International during the 3rd quarter worth about $153,000. Finally, FourThought Financial Partners LLC bought a new position in shares of Digi International in the 4th quarter valued at about $204,000. Institutional investors own 95.90% of the company’s stock.

More Digi International News

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.