Digital Turbine Target of Unusually Large Options Trading (NASDAQ:APPS)

Key Points

• Unusual options activity hit Digital Turbine, with investors buying 16,666 call options on Wednesday — about 702% above its typical daily volume.
• The stock surged to $6.83, trading well above its average volume, after the company reported better-than-expected quarterly results, including EPS of $0.16 versus $0.09 expected and revenue of $142.55 million.
• Bullish sentiment improved after Digital Turbine raised fiscal 2027 revenue guidance to $630 million-$650 million and Bank of America upgraded the stock to Buy with a $7.50 price target.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock investors acquired 16,666 call options on the company. This represents an increase of approximately 702% compared to the typical daily volume of 2,078 call options.

Digital Turbine Stock Performance

Shares of NASDAQ:APPS traded up $2.02 during trading on Wednesday, hitting $6.83. 21,086,729 shares of the company traded hands, compared to its average volume of 2,920,996. Digital Turbine has a one year low of $2.74 and a one year high of $8.28. The stock has a market capitalization of $818.32 million, a price-to-earnings ratio of -14.54, a PEG ratio of 0.18 and a beta of 2.40. The company has a quick ratio of 1.10, a current ratio of 1.10 and a debt-to-equity ratio of 1.80. The business's fifty day moving average is $3.55 and its 200-day moving average is $4.36.

Digital Turbine (NASDAQ:APPS - Get Free Report) last issued its quarterly earnings data on Tuesday, May 26th. The software maker reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.07. Digital Turbine had a positive return on equity of 21.26% and a negative net margin of 8.93%.The business had revenue of $142.55 million during the quarter, compared to the consensus estimate of $133.23 million. As a group, equities analysts predict that Digital Turbine will post 0.21 earnings per share for the current fiscal year.

Key Stories Impacting Digital Turbine

Here are the key news stories impacting Digital Turbine this week:

• Positive Sentiment: Digital Turbine beat Q4 expectations with adjusted EPS of $0.16 versus $0.09 expected, while revenue of $142.55 million also topped estimates. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: The company issued fiscal 2027 revenue guidance of $630 million to $650 million, above the market’s expectation, signaling confidence in continued growth. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Bank of America upgraded Digital Turbine from neutral to buy and set a $7.50 price target, which added to the bullish sentiment around the stock. Digital Turbine, Inc. NASDAQ: APPS Q4 2026 Earnings Call Transcript
• Neutral Sentiment: Management highlighted 20% year-over-year Q4 revenue growth and 53% growth in adjusted EBITDA, reinforcing the view that profitability is improving alongside sales. Digital Turbine Stock Soars After Q4 Double Beat, Strong FY27 Revenue Outlook
• Neutral Sentiment: The company also reported full-year fiscal 2026 revenue growth of 15% and adjusted EBITDA growth of 69%, showing solid operational momentum, though GAAP net losses remain. Digital Turbine Reports Fiscal 2026 Fourth Quarter and Fiscal Year 2026 Financial Results

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Digital Turbine in a report on Friday, March 27th. Bank of America raised shares of Digital Turbine from a "neutral" rating to a "buy" rating and set a $7.50 target price on the stock in a research report on Wednesday. Zacks Research downgraded shares of Digital Turbine from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 6th. Finally, Wall Street Zen raised shares of Digital Turbine from a "hold" rating to a "buy" rating in a research note on Saturday, May 9th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $8.75.

Institutional Investors Weigh In On Digital Turbine

A number of institutional investors have recently added to or reduced their stakes in the company. Segall Bryant & Hamill LLC acquired a new position in Digital Turbine during the first quarter worth about $1,283,000. Verus Capital Partners LLC acquired a new stake in Digital Turbine in the 1st quarter valued at about $35,000. Essential Partners LLC boosted its position in shares of Digital Turbine by 167.3% during the 1st quarter. Essential Partners LLC now owns 9,031 shares of the software maker's stock valued at $26,000 after purchasing an additional 5,652 shares in the last quarter. Bank of America Corp DE grew its stake in shares of Digital Turbine by 17.4% in the 1st quarter. Bank of America Corp DE now owns 3,619,171 shares of the software maker's stock worth $10,423,000 after purchasing an additional 535,169 shares during the last quarter. Finally, Granahan Investment Management LLC grew its stake in shares of Digital Turbine by 12.0% in the 1st quarter. Granahan Investment Management LLC now owns 7,112,351 shares of the software maker's stock worth $20,484,000 after purchasing an additional 762,888 shares during the last quarter. 63.66% of the stock is currently owned by institutional investors and hedge funds.

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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