Scotiabank Forecasts Strong Price Appreciation for AppLovin (NASDAQ:APP) Stock

Key Points

• Scotiabank has raised its price target for AppLovin from $430.00 to $450.00, implying a potential upside of 2.92% from the previous closing price.
• AppLovin reported an earnings per share (EPS) of $2.26, exceeding the consensus estimate of $2.05, although its quarterly revenue fell short of analyst expectations at $1.26 billion.
• Institutional investors now hold 41.85% of AppLovin's stock, with significant activity in its shares, including a notable purchase by Dynasty Wealth Management that increased its stake by 117,664.4%.

AppLovin (NASDAQ:APP - Get Free Report) had its price target increased by equities research analysts at Scotiabank from $430.00 to $450.00 in a report released on Thursday,Benzinga reports. The firm currently has a "sector outperform" rating on the stock. Scotiabank's price target indicates a potential downside of 0.54% from the company's previous close.

Several other research analysts have also recently issued reports on APP. Oppenheimer reaffirmed an "outperform" rating and set a $500.00 price objective (down from $560.00) on shares of AppLovin in a research report on Thursday, May 8th. Jefferies Financial Group upped their price target on AppLovin from $460.00 to $530.00 and gave the stock a "buy" rating in a report on Thursday, May 8th. Morgan Stanley increased their target price on AppLovin from $460.00 to $480.00 and gave the company an "overweight" rating in a report on Thursday. Needham & Company LLC reissued a "hold" rating on shares of AppLovin in a research note on Thursday, June 26th. Finally, Benchmark reaffirmed a "buy" rating and issued a $525.00 target price on shares of AppLovin in a research report on Thursday, May 8th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, nineteen have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $472.33.

AppLovin Trading Up 3.5%

Shares of NASDAQ APP traded up $15.10 during trading on Thursday, reaching $452.44. The stock had a trading volume of 5,989,141 shares, compared to its average volume of 7,205,909. AppLovin has a fifty-two week low of $72.81 and a fifty-two week high of $525.15. The company has a debt-to-equity ratio of 6.10, a quick ratio of 1.68 and a current ratio of 1.68. The business's 50-day moving average price is $365.28 and its 200-day moving average price is $339.24. The company has a market cap of $153.10 billion, a P/E ratio of 64.35, a PEG ratio of 2.33 and a beta of 2.43.

AppLovin (NASDAQ:APP - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $2.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.05 by $0.21. The firm had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.37 billion. AppLovin had a return on equity of 274.45% and a net margin of 45.72%. AppLovin'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. On average, equities research analysts predict that AppLovin will post 6.87 EPS for the current fiscal year.

Insider Activity at AppLovin

In other news, Director Herald Y. Chen sold 100,000 shares of AppLovin stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $419.91, for a total transaction of $41,991,000.00. Following the sale, the director owned 181,929 shares of the company's stock, valued at approximately $76,393,806.39. The trade was a 35.47% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Dawson Alyssa Harvey sold 513 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $420.30, for a total value of $215,613.90. Following the sale, the director directly owned 3,451 shares in the company, valued at approximately $1,450,455.30. The trade was a 12.94% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 1,212,968 shares of company stock valued at $455,062,980. Company insiders own 13.66% of the company's stock.

Institutional Investors Weigh In On AppLovin

Several hedge funds and other institutional investors have recently added to or reduced their stakes in APP. Vanguard Group Inc. grew its position in AppLovin by 7.3% during the 1st quarter. Vanguard Group Inc. now owns 17,830,675 shares of the company's stock worth $4,724,594,000 after purchasing an additional 1,213,536 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its stake in shares of AppLovin by 36.7% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 6,588,483 shares of the company's stock valued at $1,745,752,000 after buying an additional 1,769,400 shares during the period. Baillie Gifford & Co. lifted its stake in shares of AppLovin by 29.0% in the 1st quarter. Baillie Gifford & Co. now owns 5,270,355 shares of the company's stock valued at $1,396,486,000 after purchasing an additional 1,185,859 shares during the last quarter. Invesco Ltd. lifted its stake in shares of AppLovin by 32.9% in the 1st quarter. Invesco Ltd. now owns 4,011,306 shares of the company's stock valued at $1,062,876,000 after purchasing an additional 992,316 shares during the last quarter. Finally, Kensico Capital Management Corp lifted its stake in shares of AppLovin by 12.9% in the 1st quarter. Kensico Capital Management Corp now owns 2,879,000 shares of the company's stock valued at $762,849,000 after purchasing an additional 328,000 shares during the last quarter. Institutional investors own 41.85% of the company's stock.

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.