Digital Turbine (NASDAQ:APPS) Cut to 'Sell' by StockNews.com

Digital Turbine (NASDAQ:APPS) experienced a downgrade from StockNews.com, which lowered its rating from "hold" to "sell" in a recent research report released on Thursday.

Other financial institutions have also recently evaluated the company's stock. For instance, Craig Hallum reduced their price target for Digital Turbine from $5.00 to $4.00, maintaining a "buy" rating. This adjustment was noted in a report dated November 7th. Similarly, Macquarie revised its price target from $3.00 to $2.00 and assigned a "neutral" rating during the same period. Additionally, Bank of America downgraded Digital Turbine from a "neutral" stance to an "underperform" rating, significantly decreasing their price target from $3.50 to $1.00 in a report from November 15th. Current data indicates that two analysts have given the stock a sell rating, two have a hold rating, and one rated it as a buy. As per MarketBeat, Digital Turbine currently holds a consensus rating of "Hold" with a price target of $2.38.

Digital Turbine's Recent Stock Activity

On Thursday, Digital Turbine's stock price dropped by $0.42 during trading hours, landing at $3.16. Approximately 4,619,851 shares were traded, surpassing the average volume of 4,091,497 shares. The company's market capitalization stands at $331.82 million, with a price-to-earnings (PE) ratio of -1.04 and a beta of 2.38. Digital Turbine reports a debt-to-equity ratio of 2.50, along with a current ratio and quick ratio of 1.06. The stock's fifty-day simple moving average is $3.11, while the two-hundred-day average is $2.74. Over the past year, the stock recorded a low of $1.18 and a high of $6.86.

Digital Turbine recently announced its quarterly earnings on February 5th, revealing earnings per share (EPS) of $0.05, which fell short of analysts' expectations of $0.13 by $0.08. The company reported a return on equity of 3.41% but noted a negative net margin of 64.06%. Analysts predict that Digital Turbine will show an EPS of -0.03 for the current fiscal year.

Investor Activity and Stake Changes

There have been notable changes in large investor holdings in Digital Turbine. For example, JPMorgan Chase & Co. increased its stake in the company by 719.6% in the third quarter, now owning 387,834 shares valued at $1,191,000 after adding 340,512 shares. Acuitas Investments LLC acquired a new stake worth approximately $140,000 during the fourth quarter. Geode Capital Management LLC raised its investment by 8.4%, bringing its total to 2,334,648 shares valued at $7,169,000, having purchased an additional 181,032 shares. Furthermore, Barclays PLC heightened its holdings by 62.5%, now owning 252,673 shares valued at $776,000 after acquiring an extra 97,196 shares. Lastly, Franklin Resources Inc. purchased a new stake worth around $185,000 in the third quarter. Currently, institutional investors own 63.66% of Digital Turbine's shares.

Overview of Digital Turbine

Digital Turbine, Inc. operates a mobile growth platform targeted at advertisers, publishers, carriers, and original equipment manufacturers (OEMs) through its subsidiaries. The company functions in two primary segments: On Device Solutions and App Growth Platform. It delivers mobile applications through its application media platform to various stakeholders, while its content media platform provides news, weather, sports, programmatic advertising, and other media content delivery services.

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