Digital Turbine (NASDAQ:APPS) Cut to Buy at Wall Street Zen

Wall Street Zen downgraded shares of Digital Turbine (NASDAQ:APPS) from a strong-buy rating to a buy rating in a research report sent to investors on Sunday morning,Wall Street Zen reports.

APPS has been the subject of a number of other research reports. Benchmark upped their price objective on shares of Digital Turbine from $15.00 to $16.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. TD Cowen restated a “hold” rating on shares of Digital Turbine in a research note on Tuesday, September 29th. Craig Hallum reaffirmed a “buy” rating and issued a $18.00 target price on shares of Digital Turbine in a report on Wednesday, August 5th. Northland Securities started coverage on shares of Digital Turbine in a report on Thursday, October 29th. They issued an “outperform” rating and a $17.00 target price on the stock. Finally, Zacks Research lowered shares of Digital Turbine from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 27th. Six equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $15.42.

Digital Turbine Trading Down 35.8%

NASDAQ:APPS opened at $7.25 on Friday. The firm has a market cap of $877.39 million, a P/E ratio of 18.83, a PEG ratio of 0.58 and a beta of 3.01. 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’s 50 day simple moving average is $10.52 and its 200-day simple moving average is $7.69. Digital Turbine has a 12-month low of $2.74 and a 12-month high of $15.34.

Digital Turbine (NASDAQ:APPS) last released its quarterly earnings results on Monday, November 9th. The software maker reported $0.18 EPS for the quarter, topping the consensus estimate of $0.17 by $0.01. Digital Turbine had a return on equity of 41.51% and a net margin of 0.77%. The business had revenue of $178.68 million during the quarter, compared to analysts’ expectations of $166.75 million. Equities analysts anticipate that Digital Turbine will post 0.63 EPS for the current year.

Institutional Trading of Digital Turbine

Institutional investors have recently modified their holdings of the business. Allworth Financial LP raised its position in Digital Turbine by 42.4% in the second quarter. Allworth Financial LP now owns 5,698 shares of the software maker’s stock worth $74,000 after acquiring an additional 1,696 shares in the last quarter. TD Waterhouse Canada Inc. acquired a new stake in Digital Turbine in the third quarter valued at $25,000. State of Alaska Department of Revenue boosted its position in shares of Digital Turbine by 86.9% during the 3rd quarter. State of Alaska Department of Revenue now owns 9,223 shares of the software maker’s stock worth $102,000 after purchasing an additional 4,288 shares in the last quarter. Cetera Investment Advisers boosted its position in shares of Digital Turbine by 22.2% during the 1st quarter. Cetera Investment Advisers now owns 23,832 shares of the software maker’s stock worth $69,000 after purchasing an additional 4,323 shares in the last quarter. Finally, Integrated Wealth Concepts LLC purchased a new stake in shares of Digital Turbine during the 2nd quarter worth $56,000. 63.66% of the stock is currently owned by hedge funds and other institutional investors.

Key Digital Turbine News

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

• Positive Sentiment: Fiscal Q2 revenue rose 27% year over year to $178.7 million, beating estimates, while adjusted EPS of $0.18 also topped expectations. The company raised its FY2027 revenue outlook to $670 million–$690 million, citing momentum in AI-powered advertising and its App Growth Platform. Digital Turbine fiscal Q2 results
• Negative Sentiment: The main concern was that stronger sales did not translate into a better profit outlook. Higher partner payouts pressured margins, and Digital Turbine kept its adjusted EBITDA forecast unchanged at $145 million–$155 million despite raising revenue guidance. Planned AI investment added to investor concerns about near-term costs and profitability. Digital Turbine stock sinks as AI investments affect earnings outlook
• Negative Sentiment: Block & Leviton said it is investigating potential securities-law violations involving Digital Turbine. The announcement may weigh on sentiment, though it is an investigation notice and does not establish wrongdoing. Block & Leviton investigation announcement

About Digital Turbine

Digital Turbine, Inc. provides mobile technology and advertising solutions that connect app developers and advertisers with consumers through smartphones and other connected devices. Its platform supports app discovery, user acquisition, and advertising across the mobile ecosystem. The company’s services include on-device app recommendations and installation tools, as well as advertising solutions for app publishers and brands. Digital Turbine works with mobile operators and device manufacturers to deliver these services to users.