AppLovin Corporation (NASDAQ:APP) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• AppLovin has a consensus analyst rating of “Moderate Buy” from 24 covering firms, with 17 buy ratings, 2 strong buy ratings, and 5 hold ratings. The average 12-month price target is about $668.45.
• The company’s latest earnings beat expectations, reporting $3.56 EPS versus $3.44 expected and $1.84 billion in revenue versus $1.77 billion estimated. Revenue rose 58.9% year over year, and analysts now expect full-year EPS of 15.93.
• Insiders have been selling shares recently, including CEO Arash Adam Foroughi and CFO Matthew Stumpf, with total insider sales of 393,000 shares worth about $197.3 million over the past 90 days. Despite that, insiders still own 12.81% of the company and institutions hold 41.85%.

Shares of AppLovin Corporation (NASDAQ:APP - Get Free Report) have received a consensus recommendation of "Moderate Buy" from the twenty-four research firms that are currently covering the company, MarketBeat.com reports. Five analysts have rated the stock with a hold recommendation, seventeen have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average twelve-month price objective among analysts that have updated their coverage on the stock in the last year is $668.4545.

A number of equities research analysts recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $660.00 price objective on shares of AppLovin in a research report on Thursday, May 7th. Wedbush restated an "outperform" rating and issued a $640.00 target price on shares of AppLovin in a research note on Thursday, May 7th. Wells Fargo & Company upped their target price on AppLovin from $571.00 to $575.00 and gave the company an "overweight" rating in a report on Tuesday, July 7th. Piper Sandler reiterated an "overweight" rating on shares of AppLovin in a research report on Tuesday, July 7th. Finally, Argus started coverage on AppLovin in a report on Tuesday, April 14th. They issued a "buy" rating and a $520.00 price target on the stock.

AppLovin Stock Performance

Shares of APP opened at $412.48 on Thursday. The stock has a market capitalization of $138.57 billion, a PE ratio of 35.44, a price-to-earnings-growth ratio of 0.70 and a beta of 2.49. The business's fifty day moving average price is $502.88 and its 200 day moving average price is $482.25. The company has a debt-to-equity ratio of 1.49, a current ratio of 3.24 and a quick ratio of 3.24. AppLovin has a 12-month low of $349.21 and a 12-month high of $745.61.

AppLovin (NASDAQ:APP - Get Free Report) last released 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 analyst estimates of $1.77 billion. During the same quarter in the previous year, the firm earned $1.67 earnings per share. The firm's revenue for the quarter was up 58.9% compared to the same quarter last year. Equities research analysts forecast that AppLovin will post 15.93 EPS for the current year.

Insider Activity

In other AppLovin news, CEO Arash Adam Foroughi sold 33,042 shares of the stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $486.95, for a total value of $16,089,801.90. Following the sale, the chief executive officer directly owned 2,369,351 shares of the company's stock, valued at $1,153,755,469.45. This trade represents a 1.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Matthew Stumpf sold 9,052 shares of the firm's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $600.00, for a total value of $5,431,200.00. Following the completion of the sale, the chief financial officer owned 177,450 shares in the company, valued at $106,470,000. The trade was a 4.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 393,000 shares of company stock worth $197,297,363 over the last 90 days. Insiders own 12.81% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Cassaday & Co Wealth Management LLC bought a new stake in shares of AppLovin during the first quarter valued at approximately $25,000. Washington Trust Advisors Inc. boosted its position in shares of AppLovin by 160.0% during the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock worth $27,000 after buying an additional 24 shares during the period. Mcguire Capital Advisors Inc. bought a new position in AppLovin in the 4th quarter worth approximately $27,000. Laurel Wealth Advisors LLC bought a new position in AppLovin in the 4th quarter worth approximately $32,000. Finally, First Pacific Financial acquired a new stake in AppLovin in the 1st quarter valued at approximately $33,000. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Company Profile

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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