Digital Turbine (NASDAQ:APPS) Shares Down 7.2% - Here's What Happened

Key Points

• Digital Turbine shares fell 7.2% to approximately $10.41, with trading volume about 49% below the average session volume.
• Analyst sentiment remains generally positive: five analysts rate the stock a Buy, two rate it Hold, and one rates it Sell, producing a “Moderate Buy” consensus and an average price target of $14.80.
• The company exceeded quarterly expectations, reporting $0.19 in earnings per share versus a $0.14 estimate and $165.98 million in revenue versus a $149.98 million forecast; institutional investors own 63.66% of the stock.

Shares of Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) traded down 7.2% during trading on Tuesday. The company traded as low as $10.44 and last traded at $10.4050. 2,004,809 shares were traded during trading, a decline of 49% from the average session volume of 3,916,871 shares. The stock had previously closed at $11.21.

Analyst Upgrades and Downgrades

Several brokerages recently commented on APPS. TD Cowen reiterated a "hold" rating on shares of Digital Turbine in a research report on Tuesday, September 29th. Royal Bank Of Canada began coverage on shares of Digital Turbine in a research report on Thursday, October 1st. They issued an "outperform" rating and a $15.00 target price for the company. Craig Hallum reissued a "buy" rating and issued a $18.00 price target on shares of Digital Turbine in a research note on Wednesday, August 5th. Weiss Ratings restated a "sell (e+)" rating on shares of Digital Turbine in a research report on Wednesday, September 2nd. Finally, Wall Street Zen raised shares of Digital Turbine from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 29th. Five analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Digital Turbine has a consensus rating of "Moderate Buy" and an average price target of $14.80.

Digital Turbine Stock Performance

The company has a debt-to-equity ratio of 1.80, a quick ratio of 1.20 and a current ratio of 1.20. The company has a market capitalization of $1.26 billion, a price-to-earnings ratio of -40.15, a P/E/G ratio of 0.48 and a beta of 3.02. The firm has a 50-day simple moving average of $11.20 and a two-hundred day simple moving average of $8.17.

Digital Turbine (NASDAQ:APPS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The software maker reported $0.19 EPS for the quarter, topping the consensus estimate of $0.14 by $0.05. The business had revenue of $165.98 million during the quarter, compared to the consensus estimate of $149.98 million. Digital Turbine had a negative net margin of 4.46% and a positive return on equity of 38.34%. On average, sell-side analysts anticipate that Digital Turbine, Inc. will post 0.75 EPS for the current fiscal year.

Hedge Funds Weigh In On Digital Turbine

Institutional investors have recently bought and sold shares of the company. Granahan Investment Management LLC grew its stake in 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 valued at $20,484,000 after acquiring an additional 762,888 shares during the last quarter. AIGH Capital Management LLC purchased a new position in Digital Turbine during the first quarter worth about $14,100,000. Bank of America Corp DE lifted its position in Digital Turbine by 17.4% during the first quarter. Bank of America Corp DE now owns 3,619,171 shares of the software maker's stock worth $10,423,000 after buying an additional 535,169 shares during the period. Dimensional Fund Advisors LP boosted its stake in Digital Turbine by 56.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,353,594 shares of the software maker's stock worth $6,778,000 after buying an additional 846,116 shares during the last quarter. Finally, Manatuck Hill Partners LLC boosted its stake 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 worth $10,000,000 after buying an additional 1,400,000 shares during the last quarter. 63.66% of the stock is owned by institutional investors and hedge funds.

About Digital Turbine

Digital Turbine, Inc is a mobile advertising and application-growth company that helps advertisers, app developers, wireless carriers and device manufacturers connect with mobile users. Its platform supports the distribution, promotion and monetization of applications across smartphones and other connected devices.

The company's products and services include on-device app discovery and recommendation tools, app-install solutions, mobile advertising formats, audience-targeting capabilities and programmatic advertising technology.

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