We recently published a list of 12 Penny Stocks with Insider Buying in 2025. In this article, we are going to take a look at where Digital Turbine, Inc. (NASDAQ:APPS) stands against other penny stocks with insider buying in 2025.

Insider trading can be a reliable signal for gauging the degree of confidence that management has in the future of their company. This practice has been supported for decades by leading investors and analysts, who claim that there is only one reason for insiders to buy shares of their own companies – if they strongly believe the share prices are going to rise significantly. We discussed the theory behind insider buying in one of our recent articles named 10 Large-Cap Stocks with Insider Buying in 2025.

Insider buying can be an even more significant signal in the case of penny stocks, which are usually small- or micro-cap companies, because these stocks are often underfollowed or not followed at all, leading to significant price inefficiencies and overreactions from investors. This, in turn, may create pockets of opportunity that insiders exploit by leveraging their confidential information and visibility. Furthermore, given the smaller market cap, insiders can exert significant upward pressure on the stock price, which may help boost morale among shareholders.

READ ALSO: 10 Technology Stocks with Insider Buying in 2024

Empirical studies suggest that small caps tend to underperform relative to large caps during tough economic conditions, such as slowing GDP growth, inflation, high interest rates, and other exogenous pressures. Many believe that the US has already entered a new regime, called “Trump 2.0,” which will be dominated by higher inflation, lower economic support from government spending, and reduced availability of cheap labor, among several other possible challenges. Some surveys have hinted at a deteriorating business outlook among small- and mid-sized businesses, marked by lower CapEx budgets. Yardeni Research charts show that small-cap forward earnings have lagged significantly behind large caps since 2023. On top of that, the new economic regime in the US could further exacerbate these discrepancies and lead to greater relative underperformance of small caps, including penny stocks.

While the aforementioned developments could be bad for existing penny stock investors, they could also create investment opportunities for new investors. As the US broad market is still trading near its all-time highs, it has become increasingly difficult to find undervalued or even fairly valued large- and mid-cap companies. In such an environment, investors seeking higher returns may turn to smaller, lesser-known stocks with strong growth potential. The key takeaway for investors is that penny stocks could offer much more attractive, high-upside opportunities than large caps, and watching insider buying signals provides further reassurance regarding stock picking.

Our Methodology

We used Insider Monkey’s insider trading stock screener to find penny stocks trading under $5.00 share price with at least two insiders buying shares worth at least $100,000 in the last six months. We believe that multiple insiders buying significant amounts of stock represents a higher chance that insiders have high confidence in the company. For all the companies, we also include the number of hedge funds holding stakes in them, tracked by Insider Monkey as of Q4 2024. The stocks are ranked according to hedge fund positions.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A row of mobile phones, highlighting the company's mobile growth platform.

Digital Turbine, Inc. (NASDAQ:APPS)

Number of Hedge Fund Holders: 12

Digital Turbine, Inc. (NASDAQ:APPS) is an independent mobile growth platform that provides end-to-end products and solutions for advertisers, publishers, carriers, and device OEMs. The company operates through two primary segments: On Device Solutions and App Growth Platform (AGP). The ODS segment includes Application Media, which delivers mobile applications to various publishers, carriers, OEMs, and devices, and Content Media, offering news, weather, sports, and other content, as well as programmatic advertising and media content delivery services. The AGP segment encompasses Advertising Solutions and Ad Monetization Solutions, enabling mobile app publishers and developers to monetize their active users through display, native, and video advertising. APPS’s services are utilized by mobile operators, OEMs, and other third parties, with operations spanning North America, South America, Germany, Singapore, India, Turkey, and Israel. APPS is one of the best penny stocks with insider buying.

Digital Turbine, Inc. (NASDAQ:APPS) exceeded expectations in the latest Q3 2025 with revenue of $135 million, adjusted EBITDA of $22 million, and non-GAAP EPS of $0.13. The company demonstrated improved performance driven by increased advertising demand, transformation efforts showing bottom-line results, and enhanced execution, particularly in the On Device international business and brand strategy. The ODS segment reached $92 million in revenue, marking an 11% sequential increase, with record revenue per device achievements both domestically and internationally. The company’s international On Device revenues showed remarkable growth, up 100% year-over-year.

Digital Turbine, Inc. (NASDAQ:APPS) is successfully executing its transformation program, having already achieved over $25 million in annualized cost efficiencies. The company is expanding its global device relationships through partnerships with Motorola, Nokia, ONE Store, Xiaomi, Telecom Italia Brasil, and T-Mobile in the US. Looking forward, the company provided guidance for fiscal year 2025 with projected revenue between $485 million to $490 million and non-GAAP adjusted EBITDA between $69 million and $71 million, which is further reinforced by at least two insiders buying more than $100,000 worth of APPS stock in the last six months.

Overall, APPS ranks 6th on our list of penny stocks with insider buying in 2025. While we acknowledge the potential of APPS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APPS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.