Digital Turbine (NASDAQ:APPS) Shares Gap Down Following Weak Earnings

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) shares gapped down before the market opened 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 the consensus estimate of $0.10 by ($0.05). Digital Turbine had a positive return on equity of 1.89% and a negative net margin of 18.61%. The firm had revenue of $130.93 million during the quarter, compared to the consensus estimate of $121.94 million.

Analyst Ratings Changes

Several research firms recently weighed in on APPS. Wall Street Zen upgraded shares of Digital Turbine from a "hold" rating to a "buy" rating in a report on Saturday, June 21st. Craig Hallum lifted their price target on shares of Digital Turbine from $7.00 to $8.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Bank of America upgraded shares of Digital Turbine from an "underperform" rating to a "neutral" rating and boosted their target price for the company from $4.50 to $5.50 in a report on Wednesday.

Institutional Investors Weigh In On Digital Turbine

A number of hedge funds and other institutional investors have recently bought and sold shares of APPS. Strs Ohio purchased a new position in Digital Turbine in the 1st quarter worth about $41,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Digital Turbine during the 1st quarter valued at about $45,000. Cetera Investment Advisers increased its position in shares of Digital Turbine by 94.3% during the 4th quarter. Cetera Investment Advisers now owns 27,436 shares of the software maker's stock valued at $46,000 after purchasing an additional 13,317 shares during the last quarter. ProShare Advisors LLC increased its position in shares of Digital Turbine by 49.0% during the 4th quarter. ProShare Advisors LLC now owns 27,024 shares of the software maker's stock valued at $46,000 after purchasing an additional 8,892 shares during the last quarter. Finally, Thompson Davis & CO. Inc. purchased a new stake in shares of Digital Turbine during the 1st quarter valued at about $47,000. Hedge funds and other institutional investors own 63.66% of the company's stock.

Digital Turbine Stock Down 17.0%

The stock has a market cap of $487.66 million, a PE ratio of -5.11 and a beta of 2.57. The company has a debt-to-equity ratio of 2.66, a quick ratio of 1.09 and a current ratio of 1.09. The company's 50-day moving average price is $5.40 and its 200 day moving average price is $4.15.

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.

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