Digital Turbine (NASDAQ:APPS) Trading Up 10.4% on Analyst Upgrade

Digital Turbine, Inc. (NASDAQ:APPS)’s share price rose 10.4% during trading on Thursday after Bank of America upgraded the stock from a neutral rating to a buy rating. Bank of America now has a $7.50 price target on the stock. Digital Turbine traded as high as $7.01 and last traded at $7.3770. Approximately 2,304,204 shares changed hands during trading, a decline of 30% from the average daily volume of 3,269,469 shares. The stock had previously closed at $6.68.

APPS has been the subject of several other reports. Wall Street Zen upgraded Digital Turbine from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Zacks Research cut shares of Digital Turbine from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 6th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Digital Turbine in a report on Friday, March 27th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $8.75.

Digital Turbine News Summary

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

• Positive Sentiment: Digital Turbine beat fiscal Q4 estimates, reporting EPS of $0.16 versus $0.09 expected and revenue of $142.55 million versus $133.22 million expected, which signals better-than-anticipated operating performance. Article Title
• Positive Sentiment: The company guided fiscal 2027 revenue to $630 million-$650 million, above consensus, and said it expects double-digit growth, reinforcing confidence in the growth outlook. Article Title
• Positive Sentiment: Management highlighted improved profitability, with adjusted EBITDA up sharply year over year, and the company also announced new AI-related collaborations and a European partnership with Orange, which could support future monetization. Article Title
• Positive Sentiment: Bank of America upgraded Digital Turbine from neutral to buy and set a $7.50 price target, adding to the bullish sentiment around the stock. Article Title
• Neutral Sentiment: Short-interest data showed no meaningful change, with reported short interest at 0 shares, offering little direct impact on the stock’s move. Article Title
• Negative Sentiment: Some analysts remain cautious, arguing that margins, debt, and free cash flow are still weak despite the strong headline results, which could limit upside if execution stalls. Article Title

Hedge Funds Weigh In On Digital Turbine

Institutional investors have recently added to or reduced their stakes in the stock. AIGH Capital Management LLC acquired a new position in Digital Turbine during the first quarter worth $14,100,000. Granahan Investment Management LLC increased its stake in shares of Digital Turbine by 77.2% in 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 last quarter. Invesco Ltd. raised 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 raised 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, Dimensional Fund Advisors LP boosted its position in shares of Digital Turbine by 56.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,353,594 shares of the software maker’s stock valued at $6,778,000 after acquiring an additional 846,116 shares during the last quarter. Hedge funds and other institutional investors own 63.66% of the company’s stock.

Digital Turbine Price Performance

The company has a debt-to-equity ratio of 1.80, a current ratio of 1.10 and a quick ratio of 1.10. The stock’s fifty day moving average is $3.61 and its 200-day moving average is $4.36. The stock has a market cap of $899.85 million, a PE ratio of -20.89, a price-to-earnings-growth ratio of 0.19 and a beta of 2.40.

Digital Turbine (NASDAQ:APPS) last issued its earnings results on Tuesday, May 26th. The software maker reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.09 by $0.07. The company had revenue of $142.55 million for the quarter, compared to the consensus estimate of $133.23 million. Digital Turbine had a negative net margin of 6.68% and a positive return on equity of 28.73%. As a group, equities analysts anticipate that Digital Turbine, Inc. will post 0.62 EPS for the current year.

About Digital Turbine

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.