Wall Street Zen Downgrades Digital Turbine (NASDAQ:APPS) to Hold

Key Points

• Wall Street Zen downgraded Digital Turbine (NASDAQ:APPS) from a "buy" to a hold, joining other recent downgrades (Weiss Ratings sell, Zacks to hold); the consensus analyst rating is Hold with an average price target of $7.75.
• The company slightly beat its latest quarter with $0.18 EPS and $151.4M revenue, but remains unprofitable (negative net margin and negative P/E); the stock trades around $3.46 with a market cap of approximately $414.9M and a 1‑year range of $2.74–$8.28.
• Several institutional investors have recently added large positions (Granahan, Invesco, Manatuck Hill, Renaissance), and hedge funds now own about 63.66% of the company's shares.

Digital Turbine (NASDAQ:APPS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Saturday.

A number of other research analysts also recently issued reports on the company. Weiss Ratings restated a "sell (d-)" rating on shares of Digital Turbine in a report on Friday, March 27th. Zacks Research downgraded Digital Turbine from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and an average price target of $7.75.

Digital Turbine Trading Up 0.3%

NASDAQ APPS opened at $3.46 on Friday. Digital Turbine has a 1-year low of $2.74 and a 1-year high of $8.28. The company has a current ratio of 1.10, a quick ratio of 1.10 and a debt-to-equity ratio of 1.80. The stock has a 50-day moving average of $3.53 and a 200-day moving average of $4.73. The firm has a market cap of $414.85 million, a PE ratio of -7.21, a price-to-earnings-growth ratio of 0.13 and a beta of 2.33.

Digital Turbine (NASDAQ:APPS - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The software maker reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.02. Digital Turbine had a positive return on equity of 21.26% and a negative net margin of 8.93%.The company had revenue of $151.40 million for the quarter, compared to the consensus estimate of $145.72 million. As a group, sell-side analysts forecast that Digital Turbine will post 0.21 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Granahan Investment Management LLC grew its holdings in shares of Digital Turbine by 77.2% during the 3rd quarter. Granahan Investment Management LLC now owns 5,713,937 shares of the software maker's stock worth $36,569,000 after acquiring an additional 2,489,376 shares during the period. AIGH Capital Management LLC purchased a new position in shares of Digital Turbine during the 3rd quarter worth approximately $9,748,000. Invesco Ltd. grew its holdings in shares of Digital Turbine by 369.0% during the 4th quarter. Invesco Ltd. now owns 1,829,003 shares of the software maker's stock worth $9,145,000 after acquiring an additional 1,438,986 shares during the period. Manatuck Hill Partners LLC grew its holdings in shares of Digital Turbine by 233.3% during the 4th quarter. Manatuck Hill Partners LLC now owns 2,000,000 shares of the software maker's stock worth $10,000,000 after acquiring an additional 1,400,000 shares during the period. Finally, Renaissance Technologies LLC purchased a new position in shares of Digital Turbine during the 4th quarter worth approximately $3,712,000. Hedge funds and other institutional investors own 63.66% of the company's stock.

Digital Turbine Company Profile

Digital Turbine, Inc NASDAQ: APPS is a mobile technology company that streamlines content delivery and app advertising across connected devices. Its platform enables carriers, OEMs, app developers and advertisers to engage users through personalized app recommendations, in-app promotions and turnkey monetization solutions. By integrating software directly on smartphones and tablets, Digital Turbine simplifies the user journey from discovery to installation without requiring additional downloads or redirects through traditional app stores.

The company's flagship Ignite Platform offers end-to-end campaign management, combining demand-side advertising, real-time analytics and automated content fulfillment.

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