Digital Turbine (NASDAQ:APPS) Shares Up 10.9% - Should You Buy?

Key Points

• Digital Turbine's shares surged by 10.9% on Monday, trading between $4.92 and $5.12, amid a notable decrease in trading volume.
• Analysts have mixed views on the stock, with Bank of America upgrading it to a "neutral" rating and raising the price target to $5.50, while Wall Street Zen downgraded it to a "hold."
• Despite missing EPS estimates in its latest quarterly earnings report, Digital Turbine achieved revenue of $130.93 million, exceeding expectations of $121.94 million.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) shares were up 10.9% during trading on Monday . The stock traded as high as $4.92 and last traded at $5.12. Approximately 472,179 shares traded hands during trading, a decline of 91% from the average daily volume of 5,529,499 shares. The stock had previously closed at $4.62.

Analyst Upgrades and Downgrades

Several analysts have recently commented on APPS shares. Wall Street Zen cut shares of Digital Turbine from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. 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 report on Wednesday, August 6th. Finally, Craig Hallum increased their price objective on shares of Digital Turbine from $7.00 to $8.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Digital Turbine currently has an average rating of "Hold" and a consensus price target of $5.17.

Digital Turbine Trading Up 3.4%

The firm has a market cap of $598.26 million, a P/E ratio of -7.17, a P/E/G ratio of 3.41 and a beta of 2.29. The business's 50-day moving average is $4.75 and its two-hundred day moving average is $4.30. The company has a debt-to-equity ratio of 2.63, a current ratio of 1.09 and a quick ratio of 1.09.

Digital Turbine (NASDAQ:APPS - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $130.93 million during the quarter, compared to the consensus estimate 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 predict that Digital Turbine, Inc. will post -0.03 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Digital Turbine

A number of institutional investors have recently added to or reduced their stakes in APPS. Harbor Capital Advisors Inc. bought a new stake in shares of Digital Turbine in the 2nd quarter valued at $12,031,000. Arrowstreet Capital Limited Partnership lifted its position in shares of Digital Turbine by 179.9% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 3,163,124 shares of the software maker's stock valued at $18,662,000 after acquiring an additional 2,033,216 shares during the period. G2 Investment Partners Management LLC acquired a new position in shares of Digital Turbine during the 2nd quarter valued at $8,341,000. Segall Bryant & Hamill LLC acquired a new position in shares of Digital Turbine during the 1st quarter valued at $2,710,000. Finally, Invesco Ltd. lifted its position in shares of Digital Turbine by 240.9% during the 2nd quarter. Invesco Ltd. now owns 1,295,618 shares of the software maker's stock valued at $7,644,000 after acquiring an additional 915,536 shares during the period. 63.66% of the stock is owned by institutional investors.

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.