Digital Turbine (NASDAQ:APPS) Shares Gap Down – What’s Next?

Digital Turbine, Inc. (NASDAQ:APPS) shares gapped down before the market opened on Tuesday. The stock had previously closed at $11.30, but opened at $8.29. Digital Turbine shares last traded at $7.3210, with a volume of 5,649,690 shares changing hands.

Trending Headlines about Digital Turbine

Investors following APPS have been watching these headlines:

• Positive Sentiment: Fiscal second-quarter results beat earnings and revenue expectations, while the company raised its fiscal 2027 revenue outlook to $670 million–$690 million, citing AI-powered advertising growth and stronger demand. Article: APPS Q2 Earnings Beat Estimates on Strong Ad Growth, Guidance Up
• Negative Sentiment: Investors focused on margin pressure from higher partner payouts and the company’s decision to leave its adjusted EBITDA outlook unchanged at $145 million–$155 million despite raising revenue guidance. Planned AI investment may also weigh on near-term profitability. Article: Digital Turbine Stock Sinks as AI Investments Turn Earnings Into ‘Deflated Balloon’
• Negative Sentiment: Digital Turbine disclosed a $3.5 million understatement of revenue-share expense and accrued liabilities in previously issued financial statements. Several law firms have announced investigations into potential securities-law violations; these are allegations under investigation, not findings of wrongdoing. Article: APPS Investor Alert—Investigation Announced

Analysts Set New Price Targets

Several analysts have commented on the stock. Roth Capital initiated coverage on shares of Digital Turbine in a research note on Thursday, October 15th. They issued a “buy” rating and a $19.00 target price for the company. Zacks Research cut Digital Turbine from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Wall Street Zen cut Digital Turbine from a “strong-buy” rating to a “buy” rating in a report on Sunday. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Digital Turbine in a research report on Wednesday, September 2nd. Finally, Northland Securities began coverage on Digital Turbine in a research note on Thursday, October 29th. They issued an “outperform” rating and a $17.00 target price for the company. Six investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $15.42.

Digital Turbine Stock Performance

The company has a market cap of $945.87 million, a price-to-earnings ratio of 12.08, a price-to-earnings-growth ratio of 0.37 and a beta of 3.01. The stock’s fifty day simple moving average is $10.48 and its two-hundred day simple moving average is $7.70. The company has a debt-to-equity ratio of 1.75, a quick ratio of 1.20 and a current ratio of 1.25.

Digital Turbine (NASDAQ:APPS) last announced its quarterly earnings data on Monday, November 9th. The software maker reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.01. The company had revenue of $178.68 million during the quarter, compared to analysts’ expectations of $166.75 million. Digital Turbine had a net margin of 0.77% and a return on equity of 41.27%. Equities research analysts anticipate that Digital Turbine, Inc. will post 0.63 EPS for the current year.

Institutional Investors Weigh In On Digital Turbine

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Creek Drive Management Group LLC purchased a new position in shares of Digital Turbine in the 3rd quarter worth about $3,774,000. Landscape Capital Management L.L.C. purchased a new stake in shares of Digital Turbine during the 3rd quarter worth about $149,000. Royce & Associates LP grew its holdings in shares of Digital Turbine by 107.8% during the 3rd quarter. Royce & Associates LP now owns 293,058 shares of the software maker’s stock worth $3,253,000 after purchasing an additional 152,027 shares during the period. Diversified Trust Co purchased a new stake in shares of Digital Turbine during the 3rd quarter worth about $299,000. Finally, Aberdeen Group plc acquired a new stake in Digital Turbine during the 3rd quarter worth approximately $3,955,000. 63.66% of the stock is currently owned by institutional investors and hedge funds.

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.