Digital Turbine (NASDAQ:APPS) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Digital Turbine (APPS) from "strong-buy" to "hold"; overall consensus from analysts is a "Hold" with an average price target of $7.75 (1 Buy, 2 Hold, 1 Sell).
• Q4 results beat estimates—EPS $0.18 vs. $0.16 expected and revenue $151.4M vs. $145.7M—yet the company still posts a negative net margin (-8.93%) and is forecast to report -$0.03 EPS for the fiscal year.
• Institutional ownership and recent buying are material (63.66% owned by funds) with large stake increases from Goldman Sachs and JPMorgan; shares trade near $3.02 with a $362M market cap and a 12‑month range of $2.12–$8.28.

Digital Turbine (NASDAQ:APPS - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Several other brokerages have also commented on APPS. Weiss Ratings restated a "sell (d-)" rating on shares of Digital Turbine in a research note on Friday, March 27th. Wall Street Zen upgraded Digital Turbine from a "hold" rating to a "buy" rating in a research note on Saturday, February 7th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Digital Turbine has an average rating of "Hold" and an average price target of $7.75.

Digital Turbine Stock Performance

Shares of Digital Turbine stock opened at $3.02 on Monday. The firm has a market cap of $362.10 million, a P/E ratio of -6.29, a P/E/G ratio of 0.11 and a beta of 2.33. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 1.80. Digital Turbine has a 12 month low of $2.12 and a 12 month high of $8.28. The stock's fifty day moving average price is $3.87 and its 200-day moving average price is $4.95.

Digital Turbine (NASDAQ:APPS - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The software maker reported $0.18 EPS for the quarter, beating the consensus estimate of $0.16 by $0.02. The firm had revenue of $151.40 million for the quarter, compared to analyst estimates of $145.72 million. Digital Turbine had a positive return on equity of 21.26% and a negative net margin of 8.93%. On average, equities research analysts expect that Digital Turbine will post -0.03 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Digital Turbine

Several institutional investors and hedge funds have recently added to or reduced their stakes in APPS. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Digital Turbine by 4.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 57,539 shares of the software maker's stock valued at $156,000 after purchasing an additional 2,449 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in Digital Turbine by 74.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,021,687 shares of the software maker's stock valued at $2,774,000 after purchasing an additional 437,310 shares during the last quarter. Strs Ohio acquired a new stake in Digital Turbine in the first quarter worth about $41,000. Creative Planning boosted its holdings in Digital Turbine by 39.2% in the second quarter. Creative Planning now owns 21,289 shares of the software maker's stock worth $126,000 after acquiring an additional 5,991 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in Digital Turbine by 272.0% in the second quarter. JPMorgan Chase & Co. now owns 686,327 shares of the software maker's stock worth $4,049,000 after acquiring an additional 501,829 shares in the last quarter. Hedge funds and other 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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