Digital Turbine (NASDAQ:APPS) Shares Gap Up - Here's Why

Key Points

• Digital Turbine shares opened higher, rising from a previous close of $11.10 to $11.64 before trading around $11.35, with the stock up 1.7%.
• Analyst sentiment is broadly 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 revenue of $165.98 million versus $149.98 million expected; institutional investors own 63.66% of its shares.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) gapped up before the market opened on Thursday. The stock had previously closed at $11.10, but opened at $11.64. Digital Turbine shares last traded at $11.3450, with a volume of 709,942 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms recently commented on APPS. Craig Hallum reissued 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 research report on Wednesday, September 2nd. Wall Street Zen raised Digital Turbine from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 29th. Royal Bank Of Canada assumed coverage on shares of Digital Turbine in a research note on Wednesday. They set an "outperform" rating and a $15.00 target price on the stock. Finally, Benchmark raised their price target on shares of Digital Turbine from $15.00 to $16.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $14.80.

Digital Turbine Trading Up 1.7%

The firm has a market capitalization of $1.37 billion, a P/E ratio of -43.42, a P/E/G ratio of 0.50 and a beta of 2.87. 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 has a 50 day simple moving average of $11.03 and a 200-day simple moving average of $8.00.

Digital Turbine (NASDAQ:APPS - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The software maker reported $0.19 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.05. The firm had revenue of $165.98 million for the quarter, compared to analysts' expectations 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, equities research analysts forecast that Digital Turbine, Inc. will post 0.75 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Granahan Investment Management LLC raised its holdings in Digital Turbine by 11.1% in the 4th quarter. Granahan Investment Management LLC now owns 6,349,463 shares of the software maker's stock worth $31,747,000 after purchasing an additional 635,526 shares during the period. AIGH Capital Management LLC bought a new stake in Digital Turbine during the first quarter valued at about $14,100,000. Bank of America Corp DE grew its holdings 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 valued at $10,423,000 after purchasing an additional 535,169 shares during the period. Manatuck Hill Partners LLC increased its position in Digital Turbine by 233.3% in the fourth 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 in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Digital Turbine by 56.1% in the first 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 period. Hedge funds and other institutional investors 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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