Digital Turbine (NASDAQ:APPS) Shares Up 6.9% - Still a Buy?

Key Points

• Digital Turbine's shares surged by 6.9% on Tuesday, closing at $6.72, despite a significant drop in trading volume compared to averages.
• Analysts' opinions are mixed, with Weiss Ratings issuing a "sell" rating while Craig Hallum has upgraded the stock to a "buy," raising their price target from $7.00 to $8.00.
• The company's last quarterly earnings report revealed an EPS of $0.05, falling short of expectations, but revenue exceeded forecasts at $130.93 million.

Shares of Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) shot up 6.9% during trading on Tuesday . The company traded as high as $6.74 and last traded at $6.72. 1,065,218 shares were traded during mid-day trading, a decline of 80% from the average session volume of 5,256,156 shares. The stock had previously closed at $6.29.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. Weiss Ratings reiterated a "sell (d-)" rating on shares of Digital Turbine in a report on Wednesday, October 8th. Craig Hallum upped their price objective on shares of Digital Turbine from $7.00 to $8.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Bank of America raised shares of Digital Turbine from an "underperform" rating to a "neutral" rating and increased their price target for the stock from $4.50 to $5.50 in a research report on Wednesday, August 6th. Finally, Wall Street Zen lowered shares of Digital Turbine from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $5.17.

Digital Turbine Trading Up 5.7%

The company has a quick ratio of 1.09, a current ratio of 1.09 and a debt-to-equity ratio of 2.63. The stock has a market capitalization of $720.73 million, a P/E ratio of -8.75, a P/E/G ratio of 4.12 and a beta of 2.57. The firm's 50 day simple moving average is $5.21 and its two-hundred day simple moving average is $4.78.

Digital Turbine (NASDAQ:APPS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The software maker reported $0.05 EPS for the quarter, missing analysts' consensus estimates of $0.10 by ($0.05). The business had revenue of $130.93 million for the quarter, compared to analysts' expectations of $121.94 million. Digital Turbine had a negative net margin of 15.93% and a positive return on equity of 2.24%. Digital Turbine has set its FY 2026 guidance at EPS. As a group, analysts forecast that Digital Turbine, Inc. will post -0.03 earnings per share for the current fiscal year.

Institutional Trading of Digital Turbine

A number of hedge funds have recently added to or reduced their stakes in the business. Goldman Sachs Group Inc. increased its holdings in Digital Turbine by 74.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,021,687 shares of the software maker's stock worth $2,774,000 after buying an additional 437,310 shares during the period. S Squared Technology LLC boosted its holdings in Digital Turbine by 241.2% in the first quarter. S Squared Technology LLC now owns 730,326 shares of the software maker's stock valued at $1,983,000 after purchasing an additional 516,266 shares in the last quarter. Harbor Capital Advisors Inc. purchased a new stake in shares of Digital Turbine during the second quarter worth approximately $12,031,000. Russell Investments Group Ltd. increased its position in shares of Digital Turbine by 29,604.4% in the first quarter. Russell Investments Group Ltd. now owns 821,327 shares of the software maker's stock valued at $2,230,000 after buying an additional 818,562 shares in the last quarter. Finally, P.A.W. Capital Corp grew its holdings in shares of Digital Turbine by 175.0% during the first 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 in the last quarter. 63.66% of the stock is owned by hedge funds and other institutional investors.

Digital Turbine Company Profile

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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