Digi International (NASDAQ:DGII) Shares Gap Down – What’s Next?

Digi International Inc. (NASDAQ:DGII) 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.

Key Digi International News

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on DGII shares. Piper Sandler lifted their target price on Digi International from $41.00 to $46.00 and gave the company a “neutral” rating in a research report on Monday, January 5th. Zacks Research lowered shares of Digi International from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. Roth Mkm raised their target price on shares of Digi International from $45.00 to $50.00 and gave the stock a “buy” rating in a report on Thursday, November 13th. Craig Hallum reaffirmed a “buy” rating and issued a $50.00 price objective on shares of Digi International in a report on Thursday. Finally, B. Riley upped their price objective on shares of Digi International from $45.00 to $48.00 and gave the stock a “buy” rating in a research report on Thursday, November 13th. Four investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $49.80.

Digi International Stock Down 2.6%

The company has a current ratio of 1.21, a quick ratio of 0.85 and a debt-to-equity ratio of 0.25. The business has a fifty day simple moving average of $43.86 and a two-hundred day simple moving average of $38.64. The company has a market cap of $1.70 billion, a PE ratio of 41.97 and a beta of 0.85.

Digi International (NASDAQ:DGII) last posted its 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. The firm had revenue of $122.46 million during the quarter, compared to analysts’ expectations of $115.90 million. Digi International had a return on equity of 10.88% and a net margin of 9.48%.The firm’s revenue was up 17.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.45 earnings per share. Digi International has set its Q2 2026 guidance at 0.560-0.590 EPS. As a group, equities research analysts predict that Digi International Inc. will post 1.68 earnings per share for the current year.

Insider Activity at Digi International

In other news, VP David H. Sampsell sold 8,748 shares of the firm’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $41.52, for a total transaction of $363,216.96. Following the completion of the sale, the vice president owned 31,757,255 shares of the company’s stock, valued at approximately $1,318,561,227.60. This trade represents a 0.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP Terrence G. Schneider sold 4,208 shares of the company’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $41.68, for a total value of $175,389.44. Following the sale, the vice president owned 24,756 shares in the company, valued at $1,031,830.08. The trade was a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 56,572 shares of company stock valued at $2,256,580 in the last ninety days. 3.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Digi International

Several institutional investors and hedge funds have recently added to or reduced their stakes in DGII. Hillsdale Investment Management Inc. acquired a new stake in shares of Digi International during the 2nd quarter valued at $4,293,000. Geneva Capital Management LLC raised its holdings 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 worth $60,322,000 after acquiring an additional 95,756 shares in the last quarter. Ameriprise Financial Inc. boosted its position in Digi International by 7.7% during the second quarter. Ameriprise Financial Inc. now owns 652,197 shares of the technology company’s stock valued at $22,736,000 after purchasing an additional 46,659 shares during the last quarter. AEGON ASSET MANAGEMENT UK Plc purchased a new position in Digi International in the fourth quarter valued at about $2,000,000. Finally, SG Americas Securities LLC raised its position in Digi International by 445.3% during the third quarter. SG Americas Securities LLC now owns 30,670 shares of the technology company’s stock valued at $1,118,000 after acquiring an additional 25,046 shares in the last quarter. 95.90% of the stock is currently owned by hedge funds and other institutional investors.

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.