AppLovin Corporation (NASDAQ:APP) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• AppLovin has an average analyst rating of “Moderate Buy” from 23 firms, with 17 buy ratings, five hold ratings, and one strong buy. The average 12-month price target is $664.35.
• The company recently reported better-than-expected earnings, posting EPS of $3.56 versus the $3.44 estimate and revenue of $1.84 billion versus $1.77 billion expected. Revenue rose 58.9% year over year.
• Insider and institutional activity was mixed: CEO Arash Adam Foroughi and Director Eduardo Vivas both sold shares, while institutional investors such as Glenmede Trust and Verus Capital increased their stakes. Insiders sold 464,016 shares worth about $218.5 million over the last quarter.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-three research firms that are currently covering the firm, MarketBeat.com reports. Five equities research analysts have rated the stock with a hold recommendation, seventeen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price objective among analysts that have covered the stock in the last year is $664.35.

Several research analysts recently weighed in on APP shares. Weiss Ratings downgraded shares of AppLovin from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, May 7th. UBS Group cut their target price on shares of AppLovin from $740.00 to $716.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Royal Bank Of Canada reissued an "outperform" rating and issued a $700.00 target price on shares of AppLovin in a research note on Thursday, February 12th. Argus started coverage on shares of AppLovin in a research note on Tuesday, April 14th. They issued a "buy" rating and a $520.00 target price for the company. Finally, Citigroup reissued a "buy" rating and issued a $710.00 target price on shares of AppLovin in a research note on Monday.

Insider Activity

In other news, CEO Arash Adam Foroughi sold 50,000 shares of the company's stock in a transaction dated Wednesday, March 11th. The shares were sold at an average price of $466.04, for a total transaction of $23,302,000.00. Following the completion of the transaction, the chief executive officer owned 2,480,414 shares of the company's stock, valued at $1,155,972,140.56. This represents a 1.98% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Eduardo Vivas sold 163,910 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $453.49, for a total transaction of $74,331,545.90. Following the transaction, the director directly owned 6,969,382 shares of the company's stock, valued at approximately $3,160,545,043.18. This represents a 2.30% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 464,016 shares of company stock worth $218,477,985. Company insiders own 13.66% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Glenmede Trust Co. NA increased its stake in shares of AppLovin by 12.2% during the 1st quarter. Glenmede Trust Co. NA now owns 5,075 shares of the company's stock valued at $2,020,000 after acquiring an additional 550 shares during the last quarter. Groupama Asset Managment acquired a new position in shares of AppLovin during the 1st quarter valued at about $572,000. Verus Capital Partners LLC increased its stake in shares of AppLovin by 122.7% during the 1st quarter. Verus Capital Partners LLC now owns 686 shares of the company's stock valued at $273,000 after acquiring an additional 378 shares during the last quarter. Liontrust Investment Partners LLP increased its stake in shares of AppLovin by 2.5% during the 1st quarter. Liontrust Investment Partners LLP now owns 20,272 shares of the company's stock valued at $8,068,000 after acquiring an additional 485 shares during the last quarter. Finally, Western Wealth Management LLC acquired a new position in shares of AppLovin during the 1st quarter valued at about $194,000. Institutional investors and hedge funds own 41.85% of the company's stock.

AppLovin Trading Down 1.3%

Shares of APP stock opened at $605.63 on Wednesday. The firm has a 50-day moving average price of $460.05 and a 200 day moving average price of $520.92. AppLovin has a twelve month low of $320.00 and a twelve month high of $745.61. The company has a market capitalization of $203.46 billion, a price-to-earnings ratio of 52.03, a PEG ratio of 1.00 and a beta of 2.45. The company has a current ratio of 3.24, a quick ratio of 3.24 and a debt-to-equity ratio of 1.49.

AppLovin (NASDAQ:APP - Get Free Report) last announced its earnings results on Wednesday, May 6th. The company reported $3.56 earnings per share for the quarter, beating the consensus estimate of $3.44 by $0.12. AppLovin had a net margin of 64.29% and a return on equity of 219.37%. The firm had revenue of $1.84 billion during the quarter, compared to the consensus estimate of $1.77 billion. During the same quarter in the previous year, the company posted $1.67 EPS. The firm's revenue for the quarter was up 58.9% on a year-over-year basis. Research analysts forecast that AppLovin will post 15.86 earnings per share for the current fiscal year.

About AppLovin

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin's technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin's offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.

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