Digital Turbine (NASDAQ:APPS) Shares Down 7.3% - Should You Sell?

Key Points

• Digital Turbine shares fell 7.3% on Thursday, trading as low as $9.15 after opening near $9.73, with volume far below normal.
• Analyst sentiment is mixed but still constructive: Bank of America, Wall Street Zen, and Zacks Research recently upgraded the stock, while Weiss Ratings issued a downgrade. The current consensus rating is Moderate Buy with a target price of $8.75.
• The company recently beat expectations in its latest quarter, reporting $0.16 EPS versus the $0.09 estimate and revenue of $142.55 million versus $133.22 million expected, even as it continues to carry a negative net margin.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) traded down 7.3% during trading on Thursday . The company traded as low as $9.15 and last traded at $9.0210. Approximately 176,056 shares changed hands during mid-day trading, a decline of 96% from the average session volume of 4,158,478 shares. The stock had previously closed at $9.73.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the stock. Bank of America upgraded shares of Digital Turbine from a "neutral" rating to a "buy" rating and set a $7.50 target price for the company in a research report on Wednesday, May 27th. Wall Street Zen raised Digital Turbine from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Zacks Research raised shares of Digital Turbine from a "hold" rating to a "strong-buy" rating in a research report on Thursday, May 28th. Finally, Weiss Ratings downgraded shares of Digital Turbine from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $8.75.

Digital Turbine Trading Down 9.7%

The company has a debt-to-equity ratio of 1.84, a current ratio of 1.16 and a quick ratio of 1.16. The firm has a fifty day simple moving average of $8.41 and a 200-day simple moving average of $5.62. The firm has a market cap of $1.06 billion, a P/E ratio of -24.40, a price-to-earnings-growth ratio of 0.76 and a beta of 2.75.

Digital Turbine (NASDAQ:APPS - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The software maker reported $0.16 EPS for the quarter, beating the consensus estimate of $0.09 by $0.07. Digital Turbine had a positive return on equity of 27.60% and a negative net margin of 6.68%.The firm had revenue of $142.55 million during the quarter, compared to the consensus estimate of $133.22 million. On average, equities research analysts expect that Digital Turbine, Inc. will post 0.68 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in APPS. Quarry LP raised its holdings in shares of Digital Turbine by 1,323.4% in the 4th quarter. Quarry LP now owns 5,594 shares of the software maker's stock worth $28,000 after acquiring an additional 5,201 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Digital Turbine during the 4th quarter worth approximately $44,000. Essential Partners LLC increased its holdings in 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 purchasing an additional 5,652 shares in the last quarter. Smartleaf Asset Management LLC purchased a new stake in shares of Digital Turbine in the second quarter worth approximately $57,000. Finally, PFG Investments LLC purchased a new position in Digital Turbine during the 4th quarter worth $50,000. 63.66% of the stock is owned by institutional investors.

Digital Turbine Company Profile

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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