AppLovin (NASDAQ:APP) Given New $325.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo lowered AppLovin’s price target from $357 to $325 while maintaining an “equal weight” rating, implying approximately 5.43% upside from the prior close.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus rating and an average price target of $556.43, despite several recent target reductions.
• AppLovin shares opened at $308.26, near their 12-month low of $303.17 and well below the 12-month high of $745.61. The company’s latest quarterly revenue rose 52.8% year over year to $1.92 billion, while EPS matched estimates at $3.76.

AppLovin (NASDAQ:APP - Get Free Report) had its target price decreased by Wells Fargo & Company from $357.00 to $325.00 in a report released on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective indicates a potential upside of 5.43% from the stock's previous close.

Several other equities analysts have also recently commented on the stock. Weiss Ratings raised shares of AppLovin from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 6th. William Blair set a $440.00 price target on AppLovin in a research note on Monday. BTIG Research decreased their target price on AppLovin from $574.00 to $408.00 and set a "buy" rating for the company in a research note on Wednesday, August 12th. Citigroup dropped their price target on shares of AppLovin from $710.00 to $650.00 and set a "buy" rating on the stock in a research note on Friday, August 7th. Finally, Raymond James Financial initiated coverage on shares of AppLovin in a report on Monday, June 29th. They set a "strong-buy" rating and a $640.00 price objective on the stock. Three research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $556.43.

AppLovin Price Performance

APP opened at $308.26 on Wednesday. The stock's 50-day moving average price is $438.54 and its 200 day moving average price is $452.21. AppLovin has a 12-month low of $303.17 and a 12-month high of $745.61. The firm has a market cap of $103.16 billion, a price-to-earnings ratio of 23.55, a PEG ratio of 0.63 and a beta of 2.54. The company has a current ratio of 4.30, a quick ratio of 4.30 and a debt-to-equity ratio of 1.11.

AppLovin (NASDAQ:APP - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The company had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.94 billion. During the same period in the prior year, the firm earned $2.39 earnings per share. The business's revenue for the quarter was up 52.8% compared to the same quarter last year. As a group, sell-side analysts expect that AppLovin will post 15.57 earnings per share for the current year.

Insider Buying and Selling at AppLovin

In related news, CTO Vasily Shikin sold 62,804 shares of AppLovin stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $484.42, for a total value of $30,423,513.68. Following the sale, the chief technology officer directly owned 3,189,739 shares in the company, valued at $1,545,173,366.38. The trade was a 1.93% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Eduardo Vivas sold 163,910 shares of the company's stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $504.06, for a total value of $82,620,474.60. Following the transaction, the director directly owned 6,785,087 shares in the company, valued at $3,420,090,953.22. This represents a 2.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 393,000 shares of company stock valued at $197,297,363. Insiders own 12.81% of the company's stock.

Hedge Funds Weigh In On AppLovin

A number of institutional investors and hedge funds have recently made changes to their positions in APP. Verdence Capital Advisors LLC lifted its position in shares of AppLovin by 5.7% during the fourth quarter. Verdence Capital Advisors LLC now owns 333 shares of the company's stock worth $224,000 after acquiring an additional 18 shares in the last quarter. Revolve Wealth Partners LLC grew its position in shares of AppLovin by 2.8% in the second quarter. Revolve Wealth Partners LLC now owns 851 shares of the company's stock valued at $438,000 after purchasing an additional 23 shares in the last quarter. Rehmann Capital Advisory Group raised its stake in shares of AppLovin by 2.2% during the 3rd quarter. Rehmann Capital Advisory Group now owns 1,115 shares of the company's stock valued at $828,000 after purchasing an additional 24 shares during the period. Alta Wealth Advisors LLC lifted its holdings in AppLovin by 0.6% during the 4th quarter. Alta Wealth Advisors LLC now owns 3,925 shares of the company's stock worth $2,645,000 after purchasing an additional 24 shares in the last quarter. Finally, Washington Trust Advisors Inc. lifted its holdings in AppLovin by 160.0% during the 4th quarter. Washington Trust Advisors Inc. now owns 39 shares of the company's stock worth $27,000 after purchasing an additional 24 shares in the last quarter. 41.85% of the stock is owned by institutional investors and hedge funds.

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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