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

Zacks Research downgraded shares of Digi International (NASDAQ:DGII) from a hold rating to a strong sell rating in a research note issued to investors on Tuesday,Zacks.com reports.

Several other brokerages have also recently commented on DGII. Craig Hallum restated a “buy” rating and set a $50.00 target price on shares of Digi International in a report on Thursday, February 5th. Wall Street Zen upgraded shares of Digi International from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 31st. Roth Mkm raised their price objective on shares of Digi International from $45.00 to $50.00 and gave the company a “buy” rating in a research report on Thursday, November 13th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Digi International in a research note on Wednesday, December 24th. Finally, B. Riley Financial upped their target price 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, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Digi International has a consensus rating of “Hold” and a consensus target price of $49.80.

Digi International Stock Performance

Digi International stock opened at $46.29 on Tuesday. The firm has a market capitalization of $1.74 billion, a P/E ratio of 41.33 and a beta of 0.85. The stock has a fifty day moving average price of $44.21 and a two-hundred day moving average price of $39.10. Digi International has a 52-week low of $22.39 and a 52-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.

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. Digi International had a net margin of 9.45% and a return on equity of 10.93%. The business had revenue of $122.46 million for the quarter, compared to analyst estimates of $115.90 million. During the same quarter in the prior year, the firm 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. As a group, analysts anticipate that Digi International will post 1.68 EPS for the current fiscal year.

Insider Buying and Selling at Digi International

In related news, VP James E. Freeland sold 1,355 shares of the business’s stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $45.84, for a total transaction of $62,113.20. Following the completion of the sale, the vice president directly owned 19,987 shares of the company’s stock, valued at $916,204.08. The trade was a 6.35% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, VP David H. Sampsell sold 5,000 shares of the stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $45.74, for a total transaction of $228,700.00. Following the completion of the transaction, the vice president owned 24,740 shares in the company, valued at $1,131,607.60. This represents a 16.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 70,027 shares of company stock worth $2,872,937 in the last 90 days. Corporate insiders own 3.40% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Bessemer Group Inc. boosted its position in shares of Digi International by 2,215.1% in the 3rd 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 stake in Digi International by 25.1% in the second quarter. Lazard Asset Management LLC now owns 1,690 shares of the technology company’s stock valued at $58,000 after buying an additional 339 shares during the period. Russell Investments Group Ltd. boosted its holdings in Digi International by 1,530.9% during the third 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 bought a new position in Digi International during the third quarter worth about $153,000. Finally, SG Americas Securities LLC acquired a new position in shares of Digi International during the 2nd quarter worth about $196,000. Institutional investors and hedge funds own 95.90% of the company’s stock.

Key Stories Impacting Digi International

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

• Positive Sentiment: Q3 results & guidance: Digi reported an EPS and revenue beat for the most recent quarter and set Q2 FY2026 EPS guidance of $0.560–$0.590, supporting growth expectations. This underpins buy‑side interest. MarketBeat: DGII earnings & guidance
• Positive Sentiment: Institutional buying: Several institutions have recently increased positions (e.g., Geneva Capital, New York State Teachers), which suggests longer‑term demand and can support the stock base. Institutional holdings summary
• Neutral Sentiment: Short interest effectively zero: Latest snapshots show negligible short interest, so there’s little immediate short‑selling pressure or short‑squeeze dynamics to move the stock.
• Neutral Sentiment: Analyst mix & targets: Research coverage is mixed — several price‑target increases and buy ratings exist, but some firms remain cautious; consensus is roughly a “Hold” with an average target near $49.80.
• Negative Sentiment: Analyst downgrade: Zacks Research downgraded DGII from “hold” to “strong sell,” a headline that can prompt short‑term selling from followers of that shop. Zacks downgrade
• Negative Sentiment: Officer insider selling: Multiple executive sales reported this week — VP David Sampsell sold blocks (5,000 shares at ~$45.74 on Feb 10 and 1,100 at ~$45.04 on Feb 9) and VP James Freeland sold 1,355 shares — reducing their holdings materially. Large insider sales can sap near‑term confidence even if not unusual for liquidity reasons. Sampsell SEC filing Freeland SEC filing
• Negative Sentiment: Director sale & clustered insider sales: Director Satbir Khanuja sold 6,000 shares (~$46 avg) and coverage flagged a cluster of insider sales around Feb 10–11; aggregated insider liquidity may pressure the stock short term. Khanuja SEC filing TipRanks coverage

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.