Digital Turbine (NASDAQ:APPS) Shares Gap Down After Earnings Miss

Key Points

• Digital Turbine's shares gapped down to $4.69 following a quarterly earnings report that missed expectations, with earnings per share at $0.05 versus a forecast of $0.10.
• The company's revenue of $130.93 million exceeded estimates of $121.94 million, despite a negative net margin of 18.61% and a return on equity of 1.89%.
• Analyst ratings recently shifted, with upgrades from various firms, raising price targets and changing ratings from "underperform" to "neutral" and "buy".

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $5.44, but opened at $4.69. Digital Turbine shares last traded at $4.72, with a volume of 5,985,632 shares trading hands.

The software maker reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.10 by ($0.05). The firm had revenue of $130.93 million during the quarter, compared to analysts' expectations of $121.94 million. Digital Turbine had a positive return on equity of 2.24% and a negative net margin of 15.93%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Craig Hallum upped their target price on shares of Digital Turbine from $7.00 to $8.00 and gave the stock a "buy" rating in a research report on Wednesday. Bank of America upgraded shares of Digital Turbine from an "underperform" rating to a "neutral" rating and increased their price objective for the company from $4.50 to $5.50 in a research report on Wednesday. Finally, Wall Street Zen lowered shares of Digital Turbine from a "buy" rating to a "hold" rating in a research report on Saturday.

Institutional Investors Weigh In On Digital Turbine

Institutional investors have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. bought a new stake in shares of Digital Turbine in the 4th quarter worth about $490,000. P.A.W. Capital Corp increased its stake in Digital Turbine by 175.0% in the 1st quarter. P.A.W. Capital Corp now owns 550,000 shares of the software maker's stock worth $1,493,000 after buying an additional 350,000 shares during the period. Bank of America Corp DE increased its stake in Digital Turbine by 55.6% in the 4th quarter. Bank of America Corp DE now owns 2,028,022 shares of the software maker's stock worth $3,427,000 after buying an additional 724,297 shares during the period. JPMorgan Chase & Co. increased its stake in Digital Turbine by 39.7% in the 4th quarter. JPMorgan Chase & Co. now owns 541,825 shares of the software maker's stock worth $916,000 after buying an additional 153,991 shares during the period. Finally, AIGH Capital Management LLC purchased a new position in Digital Turbine in the 1st quarter worth about $1,170,000. Institutional investors own 63.66% of the company's stock.

Digital Turbine Stock Down 7.4%

The company has a market cap of $471.43 million, a PE ratio of -5.65, a P/E/G ratio of 2.78 and a beta of 2.57. The company's 50 day moving average is $5.39 and its 200 day moving average is $4.20. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 2.63.

About Digital Turbine

Digital Turbine, Inc, through its subsidiaries, operates a mobile growth platform for advertisers, publishers, carriers, and device original equipment manufacturers (OEMs). The company operates through two segments, On Device Solutions and App Growth Platform. Its application media platform delivers mobile applications to various publishers, carriers, OEMs, and devices; and content media platform offers news, weather, sports, and other content, as well as programmatic advertising and media content delivery services, and sponsored and editorial content media.