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

Digi International Inc. (NASDAQ:DGII)’s share price was 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. Approximately 490,881 shares traded hands during mid-day trading, an increase of 36% from the average daily volume of 360,070 shares. The stock had previously closed at $58.44.

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

Top Digi International Stories

These are some of the DGII stories that stood out recently:

• 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: Despite the quarterly beat, reports characterized the outlook as disappointing, with slower growth ahead. First-quarter EPS guidance of $0.71–$0.75 is close to the $0.72 consensus, and investors may have expected a stronger near-term trajectory. Strong Beat, but Slower Growth Ahead
• 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 Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. purchased a new position in Digi International during the second quarter worth about $445,526,000. Bank of America Corp DE purchased a new position in shares of Digi International during the 2nd quarter worth approximately $92,680,000. Port Capital LLC purchased a new position in shares of Digi International during the 2nd quarter worth approximately $24,064,000. Bank of New York Mellon Corp acquired a new stake in shares of Digi International in the 2nd quarter valued at approximately $16,274,000. Finally, Legal & General Group Plc purchased a new stake in shares of Digi International in the second quarter valued at approximately $6,309,000. 95.90% of the stock is currently owned by institutional investors and hedge funds.

Digi International Stock Performance

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 capitalization of $2.05 billion, a PE ratio of 39.31 and a beta of 1.00. The stock has a 50 day moving average of $72.31 and a two-hundred day moving average of $63.96.

Digi International (NASDAQ:DGII) last issued its earnings results on Wednesday, November 11th. The technology company reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.02. Digi International had a net margin of 10.03% and a return on equity of 13.21%. 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 business posted $0.26 earnings per share. The firm’s revenue for the quarter was up 25.3% compared to the same quarter last year. Digi International has set its Q1 2027 guidance at 0.710-0.750 EPS. Research analysts expect that Digi International Inc. will post 2.77 EPS for the current fiscal 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.