Digital Turbine (NASDAQ:APPS) Shares Down 6.3% - Time to Sell?

Key Points

• Digital Turbine shares fell 6.3% to approximately $11.36, with trading volume sharply below the average session level.
• Analyst sentiment remains cautiously positive: four analysts rate the stock a Buy, one rates it Hold and one rates it Sell, resulting in a “Moderate Buy” consensus and a $14.75 target price.
• The company exceeded quarterly expectations, reporting $0.19 in EPS versus the $0.14 estimate and revenue of $165.98 million versus $149.98 million expected, though it continues to have a negative net margin.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report)'s share price was down 6.3% on Wednesday . The company traded as low as $11.46 and last traded at $11.3590. Approximately 678,859 shares traded hands during mid-day trading, a decline of 84% from the average session volume of 4,132,630 shares. The stock had previously closed at $12.12.

Wall Street Analyst Weigh In

A number of research firms have recently commented on APPS. Bank of America upgraded shares of Digital Turbine from a "neutral" rating to a "buy" rating and set a $7.50 price objective for the company in a research note on Wednesday, May 27th. Craig Hallum reiterated a "buy" rating and set a $18.00 target price on shares of Digital Turbine in a report on Wednesday, August 5th. Weiss Ratings lowered Digital Turbine from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, June 5th. Zacks Research cut Digital Turbine from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, Roth Capital restated a "buy" rating and issued a $17.50 price target on shares of Digital Turbine in a research note on Thursday, August 6th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $14.75.

Digital Turbine Price Performance

The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of -44.96, a P/E/G ratio of 0.53 and a beta of 2.81. The company's 50 day moving average is $10.47 and its 200-day moving average is $6.51. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.80.

Digital Turbine (NASDAQ:APPS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The software maker reported $0.19 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.05. The business had revenue of $165.98 million during the quarter, compared to analysts' expectations of $149.98 million. Digital Turbine had a positive return on equity of 38.34% and a negative net margin of 4.46%. Equities research analysts anticipate that Digital Turbine, Inc. will post 0.75 earnings per share for the current year.

Institutional Investors Weigh In On Digital Turbine

A number of large investors have recently added to or reduced their stakes in the business. Quarry LP boosted its position in Digital Turbine by 1,323.4% during the fourth quarter. Quarry LP now owns 5,594 shares of the software maker's stock worth $28,000 after purchasing an additional 5,201 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Digital Turbine during the 4th quarter worth about $44,000. Essential Partners LLC lifted its stake in shares of Digital Turbine by 167.3% during the 1st quarter. Essential Partners LLC now owns 9,031 shares of the software maker's stock worth $26,000 after buying an additional 5,652 shares during the last quarter. Smartleaf Asset Management LLC bought a new stake in shares of Digital Turbine during the 2nd quarter worth about $57,000. Finally, PFG Investments LLC bought a new stake in shares of Digital Turbine during the 4th quarter worth about $50,000. Institutional investors own 63.66% of the company's stock.

About Digital Turbine

Digital Turbine, Inc NASDAQ: APPS is a mobile technology company that streamlines content delivery and app advertising across connected devices. Its platform enables carriers, OEMs, app developers and advertisers to engage users through personalized app recommendations, in-app promotions and turnkey monetization solutions. By integrating software directly on smartphones and tablets, Digital Turbine simplifies the user journey from discovery to installation without requiring additional downloads or redirects through traditional app stores.

The company's flagship Ignite Platform offers end-to-end campaign management, combining demand-side advertising, real-time analytics and automated content fulfillment.

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