Summary
Digital Turbine (APPS) provides end to end mobile content solutions for wireless carriers and Original Equipment Manufacturers . Its product offerings include DT Ignite, DT IQ, DT Content Management, DT marketplace and DT Pay. – Sources: Earningswhisper.com and Investors.com
Shares of Digital Turbine were flying higher on Tuesday after it was announced it’s being added to the S&P MidCap 400 index.
Digital Turbine – Daily Chart
Digital Turbine (APPS) is consolidating 2020 gain, printing a bullish wedge. Breakouts indicate institutions are buying again, so a break above the upper trend line is what we are contemplating. The 50d moving average provided resistance at 62.43 thus far.
Despite the temporary resistance the stocck traded relative volume (RVOL) of 7.1 times normal on Tuesday. It’s this elevated volume that caught our attention.
RSI is rising, MACD formed a bullish cross recently and stochastic is rising from oversold. Look for closes in the upper half of the daily range in the short-term. Click to enlarge chart.
Going forward we’ll be looking for elevated RVOL greater than 2 times normal in the short-term. Ditigal Turbine is being considered for a buy. Stops might be considered under the 21d ema at 53.59.
Digital Turbine – Earnings Trends
Earnings have been rising since 2018. Earnings for the coming year are projected to increase 118%. The latest Q1` report had revenue growing more than 260% on a year-over-year basis.
Click to enlarge chart
Digital Turbine (APPS) reported Q1 June 2021 earnings of $0.35 per share on revenue of $212.6 million, handily beating analysts estimates of $0.31 per share. Revenues were a bit shy at $190.3 million.
Guidance was bullish , with estimates of approximately $0.38 per share on revenue of $300.0 million to $306.0 million for Q2. Current earnings estimates are $0.37 per share on revenue of $291.10 million.
Digital Turbine – Added to S&P 400
When a stock is added to an index, ETFs and related “industry group” funds begin purchasing shares so they can keep tracking the index’s performance. In other words, there’s suddenly increased demand for Digital Turbine stock. Relative volume spiked to seven times normal daily volume as a result.
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Happy Trading,
Vinny
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