Digital Turbine (NASDAQ:APPS) Stock Sees Unusually High Call Option Buying

Digital Turbine, Inc. (NASDAQ:APPS) was the recipient of some unusual options trading on Tuesday. Stock traders acquired 8,839 call options on the company. This represents an increase of 171% compared to the average daily volume of 3,266 call options.

Digital Turbine News Roundup

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 forecasts. Adjusted EBITDA increased 46% to $39.8 million. Digital Turbine Q2 results
• Positive Sentiment: Digital Turbine raised its fiscal 2027 revenue outlook to $670 million–$690 million, above the prior analyst consensus, citing AI-powered advertising, demand, international expansion and growth in its App Growth Platform. FY2027 outlook
• Neutral Sentiment: Management said AI-related declines in open-web traffic could shift advertising toward apps, presenting a potential opportunity for the company’s mobile advertising business. CEO comments on AI and advertising
• Negative Sentiment: The company kept its fiscal 2027 adjusted EBITDA outlook at $145 million–$155 million despite the higher revenue forecast. Higher partner payouts are weighing on margins, while planned AI investment adds costs. Investors appear concerned that sales growth will not translate into stronger near-term profits. Margins and market reaction
• Negative Sentiment: Block & Leviton said it is investigating potential securities-law violations related to Digital Turbine. The announcement adds legal uncertainty, though the notice does not establish wrongdoing. Securities investigation announcement

Institutional Trading of Digital Turbine

Several large investors have recently bought and sold shares of the business. Royce & Associates LP lifted its holdings in shares of Digital Turbine by 107.8% in the third quarter. Royce & Associates LP now owns 293,058 shares of the software maker’s stock worth $3,253,000 after acquiring an additional 152,027 shares during the last quarter. Diversified Trust Co acquired a new stake in shares of Digital Turbine in the 3rd quarter valued at approximately $299,000. Aberdeen Group plc bought a new stake in shares of Digital Turbine during the 3rd quarter valued at approximately $3,955,000. Pictet Asset Management Holding SA bought a new stake in shares of Digital Turbine during the 3rd quarter valued at approximately $234,000. Finally, CenterBook Partners LP bought a new stake in shares of Digital Turbine during the 3rd quarter valued at approximately $1,358,000. 63.66% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on APPS shares. Craig Hallum reissued a “buy” rating and set a $18.00 target price on shares of Digital Turbine in a report on Wednesday, August 5th. Wall Street Zen downgraded Digital Turbine from a “strong-buy” rating to a “buy” rating in a research note on Sunday. TD Cowen reaffirmed a “hold” rating on shares of Digital Turbine in a research report on Tuesday, September 29th. Benchmark increased their price objective on shares of Digital Turbine from $15.00 to $16.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Northland Securities initiated coverage on shares of Digital Turbine in a research note on Thursday, October 29th. They set an “outperform” rating and a $17.00 price objective on the stock. Six investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $15.42.

Digital Turbine Price Performance

NASDAQ APPS traded down $3.91 on Tuesday, hitting $7.39. 10,723,532 shares of the company’s stock were exchanged, compared to its average volume of 3,839,125. The stock has a 50-day moving average of $10.59 and a 200-day moving average of $7.68. The stock has a market cap of $894.34 million, a price-to-earnings ratio of -28.30, a P/E/G ratio of 0.49 and a beta of 3.01. Digital Turbine has a 52 week low of $2.74 and a 52 week high of $15.34. The company has a current ratio of 1.20, a quick ratio of 1.20 and a debt-to-equity ratio of 1.80.

Digital Turbine (NASDAQ:APPS) last issued its quarterly earnings results 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. Digital Turbine had a positive return on equity of 38.34% and a negative net margin of 4.46%. The company had revenue of $178.68 million for the quarter, compared to analyst estimates of $166.75 million. Analysts expect that Digital Turbine will post 0.63 earnings per share for the current year.

Digital Turbine Company Profile

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.

Digital Turbine expanded its mobile advertising capabilities through acquisitions, including AdColony and Fyber in 2021.