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

Key Points

• AppLovin Corporation has received a consensus recommendation of "Moderate Buy" based on ratings from twenty-four brokerages, with an average 12-month price target of $478.81.
• Insider transactions reveal significant share sales by executives, including CEO Arash Adam Foroughi, who sold 26,200 shares, decreasing his ownership by 1%.
• AppLovin reported earnings exceeding consensus estimates, with $2.26 EPS for the last quarter, while revenue rose by 77.1% year-over-year despite falling short of expectations at $1.26 billion.

AppLovin Corporation (NASDAQ:APP - Get Free Report) has been assigned a consensus rating of "Moderate Buy" from the twenty-four research firms that are currently covering the stock, Marketbeat.com reports. One investment analyst has rated the stock with a sell rating, three have given a hold rating, eighteen have assigned a buy rating and two have given a strong buy rating to the company. The average 1 year price objective among analysts that have covered the stock in the last year is $478.8095.

Several equities research analysts have recently issued reports on APP shares. Morgan Stanley raised their price target on AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Wells Fargo & Company lifted their target price on AppLovin from $480.00 to $491.00 and gave the stock an "overweight" rating in a research report on Thursday, August 21st. Scotiabank reissued an "outperform" rating on shares of AppLovin in a research report on Thursday, August 28th. Jefferies Financial Group lifted their target price on AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a research report on Thursday, May 8th. Finally, JPMorgan Chase & Co. lifted their target price on AppLovin from $400.00 to $425.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th.

Insider Buying and Selling

In related news, insider Victoria Valenzuela sold 15,000 shares of AppLovin stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $450.00, for a total transaction of $6,750,000.00. Following the sale, the insider directly owned 304,955 shares of the company's stock, valued at $137,229,750. This trade represents a 4.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Arash Adam Foroughi sold 26,200 shares of AppLovin stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $440.23, for a total value of $11,534,026.00. Following the sale, the chief executive officer directly owned 2,590,054 shares in the company, valued at $1,140,219,472.42. The trade was a 1.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,233,165 shares of company stock valued at $544,003,820 over the last three months. 13.66% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AppLovin

A number of institutional investors have recently added to or reduced their stakes in APP. Atala Financial Inc acquired a new stake in AppLovin during the first quarter valued at approximately $26,000. Hilltop National Bank acquired a new stake in AppLovin during the second quarter valued at approximately $26,000. LFA Lugano Financial Advisors SA bought a new position in shares of AppLovin in the second quarter valued at approximately $26,000. Alpine Bank Wealth Management bought a new position in shares of AppLovin in the first quarter valued at approximately $27,000. Finally, ORG Wealth Partners LLC bought a new position in shares of AppLovin in the first quarter valued at approximately $29,000. 41.85% of the stock is owned by institutional investors and hedge funds.

AppLovin Stock Performance

Shares of NASDAQ:APP traded up $12.62 during midday trading on Monday, hitting $499.97. The company's stock had a trading volume of 6,206,698 shares, compared to its average volume of 5,763,039. The stock has a market capitalization of $169.11 billion, a price-to-earnings ratio of 71.02, a PEG ratio of 2.72 and a beta of 2.44. The stock's 50 day simple moving average is $398.93 and its 200 day simple moving average is $348.84. AppLovin has a fifty-two week low of $82.51 and a fifty-two week high of $525.15. The company has a debt-to-equity ratio of 3.01, a quick ratio of 2.74 and a current ratio of 2.74.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.05 by $0.21. The company had revenue of $1.26 billion for the quarter, compared to the consensus estimate of $1.37 billion. AppLovin had a return on equity of 252.67% and a net margin of 45.72%.The firm's revenue was up 77.1% compared to the same quarter last year. During the same period last year, the business posted $0.89 earnings per share. As a group, research analysts anticipate that AppLovin will post 6.87 earnings per share for the current year.

AppLovin Company Profile

AppLovin Corporation engages in building a software-based platform for advertisers to enhance the marketing and monetization of their content in the United States and internationally. It operates through two segments, Software Platform and Apps. The company's software solutions include AppDiscovery, a marketing software solution, which matches advertiser demand with publisher supply through auctions; MAX, an in-app bidding software that optimizes the value of a publisher's advertising inventory by running a real-time competitive auction; Adjust, a measurement and analytics marketing platform that provides marketers with the visibility, insights, and tools needed to grow their apps from early stage to maturity; and Wurl, a connected TV platform, which distributes streaming video for content companies and provides advertising and publishing solutions through its AdPool, ContentDiscovery, and Global FAST Pass products.