Why Is DIGI INTL INC (DGII) Stock Down Today?

Digi International (DGII) shares fell 12.72% to $58.44 following the release of its fourth-quarter fiscal 2026 results. The primary driver of the decline appears to be a valuation reset after the stock printed a fresh 52-week low on November 12, 2026, despite the company reporting record revenue and an all-time high pipeline.

What Happened

Digi International filed an 8-K on November 12, 2026, disclosing its financial condition and results of operations. The company reported non-GAAP earnings per share of $0.78, which beat estimates by $0.02. Revenue reached $143 million, representing a 25.1% year-over-year increase and exceeding expectations by $2.73 million. For the full fiscal year 2026, revenue climbed 24%.

During the earnings call, management highlighted a record revenue base and an all-time high sales pipeline. The company stated that its goal of $200 million in annual recurring revenue is within reach. Piper Sandler maintained a Neutral rating on the stock but lowered its price target to $67. The company also noted it is eyeing a pending deal.

What The Data Shows

The stock’s market capitalization stands at $2.5 billion with a P/E ratio of 53.1. Trailing twelve-month revenue growth is 20.3%, and the net margin is 9.6%. The stock has a beta of 1.00 and trades within a 52-week range of $35.15 to $86.84. On November 12, 2026, the stock printed one fresh 52-week low.

In terms of insider and congressional activity, there were no congressional buys in the last 90 days, but one sell was recorded. Donald J. Trump sold between $15,001 and $50,000 on July 29, 2026. Social chatter has been minimal, with zero posts in the last 24 hours and one post in the last seven days.

What To Watch

Investors should monitor the company’s progress toward its $200 million annual recurring revenue goal and the status of the pending deal mentioned during the earnings call. The recent drop to a 52-week low may also draw attention to how the market values the company’s high growth rate relative to its current multiple.