AppLovin (NASDAQ:APP) Price Target Cut to $408.00 by Analysts at BTIG Research

Key Points

• BTIG Research lowered AppLovin’s price target from $574 to $408 while maintaining a “Buy” rating, implying approximately 28% upside from the prior close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $565.91, despite recent target reductions from several firms.
• AppLovin’s latest quarterly revenue rose 52.8% year over year to $1.92 billion, while EPS of $3.76 matched estimates; however, the stock opened near its 52-week low after investor concerns about valuation and sustaining its rapid growth.

AppLovin (NASDAQ:APP - Get Free Report) had its target price lowered by investment analysts at BTIG Research from $574.00 to $408.00 in a research report issued to clients and investors on Wednesday, Marketbeat reports. The brokerage presently has a "buy" rating on the stock. BTIG Research's price objective indicates a potential upside of 28.03% from the stock's previous close.

APP has been the topic of several other research reports. JPMorgan Chase & Co. raised their target price on shares of AppLovin from $500.00 to $515.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Piper Sandler lowered shares of AppLovin from an "overweight" rating to a "neutral" rating and decreased their target price for the company from $665.00 to $385.00 in a research note on Thursday, August 6th. Benchmark dropped their price target on AppLovin from $775.00 to $500.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Weiss Ratings raised AppLovin from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, August 6th. Finally, Morgan Stanley reduced their price objective on AppLovin from $720.00 to $650.00 and set an "overweight" rating for the company in a research report on Thursday, August 6th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $565.91.

AppLovin Price Performance

Shares of NASDAQ:APP opened at $318.68 on Wednesday. The company has a debt-to-equity ratio of 1.11, a quick ratio of 4.30 and a current ratio of 4.30. The firm has a market cap of $107.06 billion, a price-to-earnings ratio of 24.50, a price-to-earnings-growth ratio of 0.63 and a beta of 2.54. The business has a 50-day simple moving average of $462.95 and a two-hundred day simple moving average of $460.08. AppLovin has a fifty-two week low of $318.12 and a fifty-two week high of $745.61.

AppLovin (NASDAQ:APP - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported $3.76 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $3.76. AppLovin had a net margin of 64.58% and a return on equity of 193.10%. The firm had revenue of $1.92 billion for the quarter, compared to the consensus estimate of $1.94 billion. During the same quarter last year, the firm posted $2.39 EPS. The business's quarterly revenue was up 52.8% compared to the same quarter last year. On average, analysts expect that AppLovin will post 15.56 earnings per share for the current year.

Insider Buying and Selling at AppLovin

In other news, insider Victoria Valenzuela sold 20,000 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $565.89, for a total transaction of $11,317,800.00. Following the completion of the sale, the insider owned 243,961 shares of the company's stock, valued at $138,055,090.29. The trade was a 7.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Arash Adam Foroughi sold 33,042 shares of the company's 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 completion of the sale, the chief executive officer 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 disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 393,000 shares of company stock worth $197,297,363. Insiders own 12.81% of the company's stock.

Institutional Trading of AppLovin

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. State Street Corp grew its position in shares of AppLovin by 111.1% during the third quarter. State Street Corp now owns 11,852,466 shares of the company's stock valued at $8,516,471,000 after purchasing an additional 6,237,051 shares in the last quarter. Corient Private Wealth LLC increased its position in AppLovin by 3,118.6% in the fourth quarter. Corient Private Wealth LLC now owns 4,194,071 shares of the company's stock worth $2,826,049,000 after purchasing an additional 4,063,763 shares during the last quarter. Norges Bank purchased a new stake in AppLovin during the fourth quarter valued at $2,040,321,000. Bank of New York Mellon Corp purchased a new stake in AppLovin during the second quarter valued at $730,015,000. Finally, Northern Trust Corp lifted its position in AppLovin by 46.8% during the third quarter. Northern Trust Corp now owns 2,374,460 shares of the company's stock valued at $1,706,144,000 after purchasing an additional 756,660 shares during the last quarter. Hedge funds and other institutional investors own 41.85% of the company's stock.

AppLovin News Roundup

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Phillip Securities upgraded AppLovin from “moderate buy” to “strong buy,” indicating that the recent pullback may have improved the stock’s risk-reward profile. Zacks.com
• Positive Sentiment: Several recent analyses remain bullish, arguing that AppLovin’s revenue and earnings growth are strong and that the market may have overreacted to its quarterly results. Optimistic commentary also points to upbeat third-quarter guidance and the possibility that the shares are undervalued after the selloff. AppLovin Stock: Buy or Sell?
• Neutral Sentiment: Bank of America maintained a “Neutral” rating but reduced its price target from $430 to $400. The lower target still implies substantial upside from the current level, but reflects a more cautious view of AppLovin’s valuation and growth visibility. Analyst rating changes
• Negative Sentiment: Bank of America downgraded AppLovin from “Buy” to “Neutral,” citing increased uncertainty over the company’s ability to sustain its long-term 30% revenue-growth target. The firm said second-quarter results raised questions about a previously expected source of sequential baseline growth. AppLovin shares drop on Bank of America downgrade
• Negative Sentiment: AppLovin’s second-quarter revenue came in slightly below consensus estimates, and execution concerns overshadowed earnings growth and positive third-quarter guidance. Investors are now focused on whether the company can maintain its unusually high growth rate, contributing to continued selling pressure. APP Stock Falls 17% Since Q2 Earnings

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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