Digital Turbine (NASDAQ:APPS) Stock Jumps 9.8% - Should You Buy?

Key Points

• Digital Turbine shares jumped 9.8% to about $9.29, though trading volume was 76% below the average session level.
• Analyst sentiment is generally positive: the stock has a “Moderate Buy” consensus rating and an average price target of $15.42, while Northland Securities maintained an “Outperform” rating with a $17 target.
• The company beat quarterly earnings and revenue estimates, but remains a high-risk turnaround investment given its negative net margin, 3.02 beta and 88.4% five-year stock decline.

Digital Turbine, Inc. (NASDAQ:APPS - Get Free Report) shares rose 9.8% during trading on Tuesday. The company traded as high as $9.26 and last traded at $9.2930. 914,648 shares traded hands during trading, a decline of 76% from the average session volume of 3,784,407 shares. The stock had previously closed at $8.46.

Digital Turbine News Roundup

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

• Positive Sentiment: Northland Securities maintained an “Outperform” rating and a $17 price target for Digital Turbine, well above the stock’s recently cited price near $9.29. The firm expects EPS of $0.53 in fiscal 2027 and $0.72 in fiscal 2028, suggesting continued earnings growth. Digital Turbine analyst estimates
• Positive Sentiment: Northland’s quarterly forecasts call for EPS of $0.13 in Q2 fiscal 2027, rising to $0.14 in Q3, $0.16 in Q1 fiscal 2028, $0.18 in Q2 and $0.19 in Q3. The estimates reinforce the view that profitability could improve over time.
• Positive Sentiment: A Yahoo Finance analysis argues that Digital Turbine may be undervalued after a recent pullback, potentially attracting investors focused on the company’s sales valuation and longer-term recovery prospects. Digital Turbine stock may be undervalued
• Neutral Sentiment: The analyst estimates were issued on October 29 and largely repeat the same forecast set across multiple reports, so they appear to provide confirmation of Northland’s existing outlook rather than a major new revision.
• Negative Sentiment: Digital Turbine remains a volatile turnaround investment: the Yahoo Finance analysis notes that the stock has fallen 88.4% over five years, while the company continues to face questions about whether expected growth is adequately supported by current sales.

Wall Street Analyst Weigh In

A number of brokerages recently commented on APPS. Benchmark raised their price target on Digital Turbine from $15.00 to $16.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Royal Bank Of Canada started coverage on Digital Turbine in a research report on Thursday, October 1st. They issued an "outperform" rating and a $15.00 price target for the company. Weiss Ratings restated a "sell (e+)" rating on shares of Digital Turbine in a research note on Wednesday, September 2nd. Wall Street Zen cut Digital Turbine from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Finally, TD Cowen reissued a "hold" rating on shares of Digital Turbine in a report on Tuesday, September 29th. Six research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Digital Turbine presently has an average rating of "Moderate Buy" and an average target price of $15.42.

Digital Turbine Trading Up 9.5%

The company has a fifty day moving average price of $10.69 and a 200-day moving average price of $7.56. 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 firm has a market capitalization of $1.12 billion, a price-to-earnings ratio of -35.73, a price-to-earnings-growth ratio of 0.47 and a beta of 3.02.

Digital Turbine (NASDAQ:APPS - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The software maker reported $0.19 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 business had revenue of $165.98 million during the quarter, compared to analyst estimates of $149.98 million. On average, equities research analysts predict that Digital Turbine, Inc. will post 0.68 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. CenterBook Partners LP bought a new stake in shares of Digital Turbine during the 3rd quarter valued at $1,358,000. Counterpoint Mutual Funds LLC purchased a new stake in Digital Turbine in the 3rd quarter worth approximately $264,000. TD Waterhouse Canada Inc. purchased a new stake in shares of Digital Turbine in the third quarter worth $25,000. State of Alaska Department of Revenue boosted its stake in Digital Turbine by 86.9% during the third quarter. State of Alaska Department of Revenue now owns 9,223 shares of the software maker's stock valued at $102,000 after buying an additional 4,288 shares during the period. Finally, WINTON GROUP Ltd increased its stake in Digital Turbine by 178.7% in the 2nd quarter. WINTON GROUP Ltd now owns 121,796 shares of the software maker's stock worth $1,571,000 after acquiring an additional 78,096 shares during the last quarter. 63.66% of the stock is owned by institutional investors.

Digital Turbine Company Profile

Digital Turbine, Inc NASDAQ: APPS is a mobile advertising and application distribution company that helps advertisers, mobile carriers, device manufacturers and application developers connect with smartphone users. Its platform is designed to support the discovery, distribution, promotion and monetization of mobile applications and digital content.

The company provides technology that can be integrated into mobile devices and operating systems, including tools for app recommendations, device setup and application installation.

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