Digital Turbine (NASDAQ:APPS) Trading Down 6.9% - Here's Why

Key Points

• Digital Turbine shares fell 6.9% to about $13.40, with trading volume 69% below the average daily level.
• Analyst sentiment remains generally positive, with a consensus rating of “Moderate Buy” and an average price target of $14.75, despite recent rating downgrades.
• The company exceeded quarterly expectations, reporting $0.19 in earnings per share versus the $0.14 consensus and revenue of $165.98 million compared with estimates of $149.98 million.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) shares dropped 6.9% during trading on Tuesday . The stock traded as low as $13.59 and last traded at $13.3980. 1,309,392 shares traded hands during trading, a decline of 69% from the average daily volume of 4,180,906 shares. The stock had previously closed at $14.39.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Benchmark upped their target price on Digital Turbine from $15.00 to $16.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Zacks Research lowered Digital Turbine from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Weiss Ratings cut Digital Turbine from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, June 5th. Wall Street Zen downgraded Digital Turbine from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Finally, Bank of America raised Digital Turbine from a "neutral" rating to a "buy" rating and set a $7.50 price objective on the stock in a research note on Wednesday, May 27th. Four equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $14.75.

Digital Turbine Stock Performance

The firm has a market capitalization of $1.62 billion, a price-to-earnings ratio of -51.40, a PEG ratio of 0.53 and a beta of 2.81. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.80. The stock's 50-day moving average is $10.07 and its 200-day moving average is $6.21.

Digital Turbine (NASDAQ:APPS - Get Free Report) last posted its earnings results on Tuesday, August 4th. The software maker reported $0.19 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.05. Digital Turbine had a negative net margin of 4.46% and a positive return on equity of 38.34%. The firm had revenue of $165.98 million for the quarter, compared to analysts' expectations of $149.98 million. On average, analysts predict that Digital Turbine, Inc. will post 0.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in APPS. Essential Partners LLC boosted its position in Digital Turbine by 167.3% during the 1st quarter. Essential Partners LLC now owns 9,031 shares of the software maker's stock worth $26,000 after buying an additional 5,652 shares during the period. Quarry LP raised its stake in shares of Digital Turbine by 1,323.4% during the fourth quarter. Quarry LP now owns 5,594 shares of the software maker's stock valued at $28,000 after acquiring an additional 5,201 shares during the last quarter. Verus Capital Partners LLC bought a new position in shares of Digital Turbine during the first quarter valued at $35,000. Strs Ohio acquired a new position in shares of Digital Turbine during the first quarter worth $41,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Digital Turbine during the fourth quarter worth $44,000. Institutional investors and hedge funds own 63.66% of the company's stock.

Digital Turbine Company Profile

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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