Digital Turbine Stock Eyes Best Day Since 2009

Digital Turbine Inc (NASDAQ:APPS) is making noise today, last seen up a whopping 59.8% at $17.21 after reporting better-than-expected fiscal second-quarter earnings of 34 cents per share. While revenue missed anaysts' estimates, the company raised its 2023 guidance, highlighting strong sales of its On-Device Solutions and App Growth Platform.

The security is also brushing off price-target cuts from Oppenheimer and Craig-Hallum to $17 and $30, respectively. Analysts are still bullish on APPS, though, with all five in coverage calling it a "strong buy." Plus, the equity's 12-month consensus target price of $21.99 is a healthy 31.8% premium to current levels.

Short sellers are still in control, though, with short interest up 11.3% in the last two reporting periods. The 5.76 million shares sold short now make up 6.1% of the stock's available float, leaving the equity ripe for potential short covering moving forward.

Call traders are swarming the stock today, with 19,000 calls across the tape so far -- seven times the intraday average -- compared to 9,858 puts. Most popular is the November 20 call, followed closely by the weekly 11/11 16-strike call, with positions being opened at both.

This marks a sharp shift in sentiment in the options pits, which have been bearish of late. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), APPS sports a 10-day put/call volume ratio of 6.45 that ranks in the 97th percentile of annual readings, indicating puts have been getting picked up at a much faster-than-usual clip over the last two weeks. 

Digital Turbine stock earlier surged to its highest level since Sept. 21, and is eyeing its first close above the 40-day moving average in more than two months. Shares are also looking to score their best single-day percentage gain since May 2009, though year-to-date, APPS is still down 72.6%