Digital Turbine (NASDAQ:APPS) Stock Price Down 13.1% - Here's Why

Key Points

• Digital Turbine shares fell 13.1% to $9.19 in Friday trading, with the decline occurring on volume substantially below the stock’s average.
• Despite the selloff, analysts maintained a generally positive outlook: six rated the stock Buy, two Hold and one Sell, producing a “Moderate Buy” consensus and an average price target of $15.42.
• The company recently 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) shares were down 13.1% on Friday. The company traded as low as $8.45 and last traded at $9.1890. Approximately 1,414,813 shares traded hands during mid-day trading, a decline of 62% from the average session volume of 3,770,605 shares. The stock had previously closed at $10.57.

Analysts Set New Price Targets

APPS has been the topic of several research reports. Wall Street Zen upgraded shares of Digital Turbine from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 29th. Zacks Research cut Digital Turbine from a "strong-buy" rating to a "hold" rating in a report on Monday, July 27th. Benchmark increased their price objective on Digital Turbine from $15.00 to $16.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Roth Capital assumed coverage on shares of Digital Turbine in a research note on Thursday, October 15th. They set a "buy" rating and a $19.00 price objective on the stock. Finally, Northland Securities began coverage on Digital Turbine in a report on Thursday. They issued an "outperform" rating and a $17.00 price objective for the company. Six analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $15.42.

Digital Turbine Price Performance

The company has a debt-to-equity ratio of 1.80, a current ratio of 1.20 and a quick ratio of 1.20. The firm has a market cap of $1.06 billion, a P/E ratio of -33.75, a PEG ratio of 0.47 and a beta of 3.02. The stock's 50-day simple moving average is $10.77 and its two-hundred day simple moving average is $7.52.

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 analysts' consensus estimates of $0.14 by $0.05. Digital Turbine had a positive return on equity of 38.34% and a negative net margin of 4.46%. The firm had revenue of $165.98 million during the quarter, compared to analysts' expectations of $149.98 million. Equities research analysts forecast that Digital Turbine, Inc. will post 0.68 earnings per share for the current fiscal year.

Institutional Trading of Digital Turbine

A number of hedge funds have recently added to or reduced their stakes in APPS. AIGH Capital Management LLC acquired a new stake in shares of Digital Turbine during the first quarter valued at about $14,100,000. Dimensional Fund Advisors LP increased 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 purchasing an additional 846,116 shares during the period. Granahan Investment Management LLC raised 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 valued at $20,484,000 after buying an additional 762,888 shares in the last quarter. Bank of America Corp DE boosted its stake in Digital Turbine by 17.4% in 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 purchasing an additional 535,169 shares in the last quarter. Finally, Segall Bryant & Hamill LLC acquired a new position in shares of Digital Turbine in the 1st quarter valued at $1,283,000. 63.66% of the stock is owned by institutional investors and hedge funds.

About Digital Turbine

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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