Digital Turbine (NASDAQ:APPS) Shares Down 6% - Here's Why

Key Points

• Digital Turbine shares fell 6% to $10.85 in mid-day trading, with volume down sharply versus the stock’s average daily trading activity.
• Despite the decline, analysts remain broadly positive: four rate the stock Buy, one Hold and one Sell, resulting in a “Moderate Buy” consensus and an average price target of $14.75.
• The company exceeded quarterly expectations, reporting $0.19 in EPS versus $0.14 expected and revenue of $165.98 million versus $149.98 million estimated. Institutional investors own approximately 63.66% of the shares.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) was down 6% during mid-day trading on Thursday . The company traded as low as $10.52 and last traded at $10.85. Approximately 719,978 shares changed hands during trading, a decline of 82% from the average daily volume of 3,927,320 shares. The stock had previously closed at $11.54.

Wall Street Analyst Weigh In

A number of brokerages recently commented on APPS. Roth Capital reissued a "buy" rating and issued a $17.50 price target on shares of Digital Turbine in a report on Thursday, August 6th. Craig Hallum reiterated a "buy" rating and set a $18.00 price objective on shares of Digital Turbine in a research note on Wednesday, August 5th. Weiss Ratings reissued a "sell (e+)" rating on shares of Digital Turbine in a report on Wednesday, September 2nd. Benchmark boosted their price objective on Digital Turbine from $15.00 to $16.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, Wall Street Zen raised shares of Digital Turbine from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Digital Turbine currently has an average rating of "Moderate Buy" and a consensus price target of $14.75.

Digital Turbine Stock Down 6.8%

The company has a quick ratio of 1.20, a current ratio of 1.20 and a debt-to-equity ratio of 1.80. The firm's 50-day moving average price is $10.77 and its 200 day moving average price is $7.75. The firm has a market cap of $1.30 billion, a P/E ratio of -41.10, a price-to-earnings-growth ratio of 0.52 and a beta of 2.87.

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 (EPS) for the quarter, beating 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 during the quarter, compared to analyst estimates of $149.98 million. As a group, research analysts expect that Digital Turbine, Inc. will post 0.75 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in APPS. Granahan Investment Management LLC increased its holdings in shares of Digital Turbine by 11.1% during the fourth quarter. Granahan Investment Management LLC now owns 6,349,463 shares of the software maker's stock valued at $31,747,000 after purchasing an additional 635,526 shares during the period. AIGH Capital Management LLC acquired a new stake in Digital Turbine in the first quarter worth about $14,100,000. Bank of America Corp DE grew its position in 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 valued at $10,423,000 after buying an additional 535,169 shares in the last quarter. Manatuck Hill Partners LLC grew its position in Digital Turbine by 233.3% in the 4th quarter. Manatuck Hill Partners LLC now owns 2,000,000 shares of the software maker's stock valued at $10,000,000 after buying an additional 1,400,000 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in Digital Turbine by 56.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,353,594 shares of the software maker's stock valued at $6,778,000 after buying an additional 846,116 shares during the period. Institutional investors and hedge funds own 63.66% of the company's stock.

Digital Turbine Company Profile

Digital Turbine, Inc is a mobile advertising and application growth company that provides technology for advertisers, mobile operators, device manufacturers and app publishers. Its platform helps businesses promote, distribute and monetize mobile applications and digital content across smartphones and other connected devices.

The company's offerings include on-device app discovery and recommendation tools, advertising inventory and exchange services, and technologies that support app installation and user engagement.

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