Digital Turbine Stock Set to Join S&P MidCap 400

The equity already sports an over 148% year-over-year lead

Digital Content Manager
Aug 31, 2021 at 3:41 PM
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The shares of Digital Turbine Inc (NASDAQ:APPS) are surging today, last seen up 17.5% to trade at $60.23 at last check, after news came out that the advertising name will join the S&P MidCap 400. The company is set to replace Ligand Pharmaceuticals (LGND) on Sept. 7.

Analysts are already chiming in on the update. Canaccord Genuity upgraded the equity to "buy" from "hold," and raised its price target to $95 from $80. Meanwhile, Macquarie initiated coverage of APPS with a "neutral" rating and $60 price target. The brokerage bunch was already optimistic towards the stock, with three of four analysts in question sporting a "strong buy," while its 12-month target price of $101.17 is a massive 68.2% premium to current levels.

Digital Turbine stock has experienced some volatility since its March 2, all-time high of $102.55. Shares have recently bounced off the $48 mark, though, and are on pace to overcome resistance at the 40-day moving average, which had been pressuring the security lower since July. The equity is also looking to nab its best session in five months, and sports a 148.4% year-over-year lead. 

APPS 40 Day

Drilling down to today's options activity, 61,000 calls and 14,000 puts have crossed the tape, which is four times the intraday average. Most popular is the weekly 9/3 60-strike call, followed by the 63-strike call in the same series, with new positions currently being opened at both.

The equity has exceeded option traders' volatility expectations during the past year -- a good thing for buyers. This is per its Schaeffer's Volatility Scorecard (SVS), which sits at an elevated 89 out of a possible 100. 

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